To learn more about how you can protect your legal rights, get in touch with our firm today. If you filed a commercial property claim, fire claim, business interruption claims, or another sort of claim regarding insurance, there is a possibility you will need to litigate if an insurance company wrongs you. You will want to determine whether or not the Prompt Payment Act has weight in your case by discussing this with an attorney. Insurance companies that delay or deny payments can undoubtedly be held liable for their offenses and will have to pay penalty interest and attorney's fees if the court deems it necessary. You should not worry about the costs of hiring an insurance claim attorney, as the expenses may be covered by the insurance company after they are found guilty of the offenses of underpayment or late payment. If you are dealing with insurance claim issues regarding tardiness or underpayment, then you want an attorney on your side. Learn More About the Texas Prompt Payment Act & Your Rights There are rare circumstances when an insurer can obtain an extension of deadlines, but these cases are not common. Insurers who want to audit a claim are still required to pay it in full while the audit takes place. Your claims should be paid within 45 days if it was submitted in a non-electronic format and 30 days if it was submitted in an electronic format. This can add up, and you may be able to receive a significant amount of extra finances as a result. In addition to this, the insurance company is required to pay 18% interest on the amount that was delayed from the date that the payment was due. Those who do not make a correct payment until 91 to 270 days of the deadline of the payment can result in a $200,000 fine or 100% of the difference between the billed and contracted rate. Those who do not correct the mistake until 46 to 91 days later may need to pay up to $200,000 or 100% of the difference. For example, those who underpay within 45 days of the claim payment deadline or those who pay up to 45 days after a payment deadline are susceptible to a $100,000 fine or 50% of the difference between the billed and contracted rate of the payment. If you are the victim of a late insurance penalty or an underpayment, you may be entitled to additional payments. Penalties for Underpayment & Late Payments If your case has been delayed in any way, our attorneys can help you take a stand. The Texas Insurance Law also states that if an insurer denies a claim and later an attorney can prove that that denial was invalid, then the insurer may be still held liable for an overdue payment. If you do not receive your payment, then the insurer may need to pay penalty interest to you and also cover your attorney's fees. If you have filed a claim and received an amount of compensation, then you deserve to have that money as soon as possible. Insurers who fail in this responsibility may have to pay your insurance attorney's fees or may also have to cover the value of the claim and pay set penalties.Įvery claim is different, but insurers are required to be consistent when it to comes to their job. This code mandates that all insurers must be diligent to pay out claims within 60 days of receiving all requested items, forms, and statements. To remove the possibility of late payments or underpayments that do not reflect the full amount that you deserve, the state of Texas has created the Prompt Payment Act of 2003, which is now written into the Texas Insurance Code. If you are entitled to money from an insurance claim, you should expect to receive the money as soon as possible. The Texas Prompt Payment Act Insurance Companies Are Obligated to Make Timely Payments
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