Texas Insurance Code

§ 887.208 — CONTESTED CLAIMS

IN § 887.208Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part E. MUTUAL AND FRATERNAL COMPANIES AND RELATED ENTITIES · Ch. 887. PROVISIONS APPLICABLE TO CERTAIN MUTUAL ASSESSMENT COMPANIES · Art. E. POWERS AND DUTIES RELATING TO INSURANCE AND COVERAGES

Statute text

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(a)An association may not contest a claim:

(1)only for delay or for a captious or inconsequential reason; or

(2)to force settlement at less than full payment.

(b)An association shall notify a claimant of the association's intent to deny liability on a claim not later than the 60th day after the date the association receives due proof of claim.

(c)An association that does not notify a claimant as provided by Subsection (b) is presumed as a matter of law to have accepted liability on the claim.

(d)The commissioner shall revoke the certificate of authority of any association the commissioner finds is operating fraudulently or improperly contesting claims.

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Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.