Texas Insurance Code

§ 542.003 — UNFAIR CLAIM SETTLEMENT PRACTICES PROHIBITED

IN § 542.003Title 5. PROTECTION OF CONSUMER INTERESTS · Part C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES · Ch. 542. PROCESSING AND SETTLEMENT OF CLAIMS · Art. A. UNFAIR CLAIM SETTLEMENT PRACTICES

Statute text

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(a)An insurer engaging in business in this state may not engage in an unfair claim settlement practice.

(b)Any of the following acts by an insurer constitutes unfair claim settlement practices:

(1)knowingly misrepresenting to a claimant pertinent facts or policy provisions relating to coverage at issue;

(2)failing to acknowledge with reasonable promptness pertinent communications relating to a claim arising under the insurer's policy;

(3)failing to adopt and implement reasonable standards for the prompt investigation of claims arising under the insurer's policies;

(4)not attempting in good faith to effect a prompt, fair, and equitable settlement of a claim submitted in which liability has become reasonably clear;

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Legislative history

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.