Texas Prompt Payment of Claims Act: Your Rights | GoSuits

• What is the Texas Prompt Payment of Claims Act and why does it matter after a crash or injury?
• Which Texas insurance claims are covered by the TPPCA and which are not?
• What are the insurer deadlines for prompt payment of claims in Texas?
• What penalty interest and attorney’s fees apply if my insurer pays late?
• How is a Texas prompt-payment claim different from “bad faith” insurance claims?
• How do UM/UIM, PIP, and MedPay claims interact with the TPPCA in Texas?
• What if the insurer asks for more information or says it needs more time?
• How can you document your claim to keep TPPCA deadlines moving?
• What can plaintiffs recover and what defenses can insurers raise in TPPCA lawsuits?
• What notices and filings are required before suing under the TPPCA?
• What does a typical timeline look like for a Texas car accident insurance claim?
• How do attorney’s fees work in Texas prompt-payment cases?
• Do city or county venues in Texas affect TPPCA cases?
• What common mistakes slow down Texas prompt-payment claims?
• How can GoSuits help with a delayed insurance payment under the TPPCA?
• Where can you read the law and official guidance on the Texas Prompt Payment of Claims Act?

What is the Texas Prompt Payment of Claims Act and why does it matter after a crash or injury?

The Texas Prompt Payment of Claims Act is the short name for provisions in the Texas Insurance Code that set strict deadlines for insurers to acknowledge, investigate, accept or reject, and pay first-party insurance claims. In everyday situations, this touches the insurance benefits you rely on after a wreck or other injury event, such as personal injury protection (PIP), medical payments (MedPay), and uninsured or underinsured motorist coverage (UM/UIM). The core rules are in Texas Insurance Code Chapter 542, Subchapter B, with additional rules for certain weather-related property claims in Chapter 542A.

These deadlines exist to reduce waiting and uncertainty. If an insurer misses the statutory payment deadlines after it has the information it needs, the law imposes penalty interest and allows recovery of reasonable attorney’s fees. See Tex. Ins. Code § 542.060. For storms and certain weather-related property claims subject to Chapter 542A, the interest calculation is different. See Tex. Ins. Code § 542A.007.

Across Texas communities like Houston, Dallas, Austin, San Antonio, Fort Worth, El Paso, Arlington, Plano, Frisco, Irving, Corpus Christi, Lubbock, McAllen, Waco, Round Rock, The Woodlands, Sugar Land, Katy, and counties such as Harris County, Dallas County, Travis County, Bexar County, and Tarrant County, these rules apply to most first-party claims. Knowing the deadlines helps you and your lawyer push for timely payment and recognize when statutory penalties may apply.

Which Texas insurance claims are covered by the TPPCA and which are not?

The TPPCA governs first-party claims. That means claims where you seek benefits under your own policy, such as:

• PIP and MedPay under your auto policy, often for medical bills and sometimes lost income. See Tex. Ins. Code §§ 1952.151–.157.
• UM/UIM benefits when the at-fault driver has no insurance or too little coverage. See Tex. Ins. Code § 1952.101 and related sections.
• Property damage under your collision coverage or homeowner’s insurance. Note that weather-related property claims are subject to special rules in Chapter 542A.

Third-party claims, where you demand payment from another person’s insurer based on that person’s negligence, are generally not governed by the TPPCA deadlines. The TPPCA focuses on the insurer’s obligations to its own policyholder or claimant under the policy. However, even in third-party situations, you may have first-party coverages like PIP, MedPay, or UM/UIM that do trigger the TPPCA deadlines.

What are the insurer deadlines for prompt payment of claims in Texas?

Texas law is specific about each step of the claim process when you file a first-party insurance claim.

What is the deadline to acknowledge and begin investigating a claim?

• 15 calendar days to acknowledge and request information. After you give notice of a claim, the insurer must acknowledge receipt, begin an investigation, and request all items, statements, and forms it reasonably needs within 15 calendar days. See Tex. Ins. Code § 542.055.
• 30 days for surplus lines insurers. See § 542.055(a-1).

When must the insurer accept or reject the claim?

• 15 business days after it receives all requested items to accept or reject the claim in writing. If it cannot accept or reject within that period, it must explain the reasons and may extend. See Tex. Ins. Code § 542.056(a)-(c).
• Up to 45 days total with a written explanation if the insurer needs more time for a reasonable basis. See § 542.056(d).

If the claim is accepted, when must the insurer pay?

• 5 business days to pay after the insurer notifies you that it will pay the claim. See Tex. Ins. Code § 542.057.
• 20 business days for admitted or surplus lines insurers in some circumstances. See § 542.057(c).

What is the overall late-payment trigger?

• 60-day cap after the insurer has all requested items. If the insurer delays payment of a claim for more than 60 days after receiving all items, statements, and forms reasonably requested, it may be liable for statutory interest and attorney’s fees. See Tex. Ins. Code § 542.058.

These rules apply statewide, whether your claim arises in Houston, Dallas, Austin, San Antonio, Fort Worth, El Paso, or smaller cities like Waco, Round Rock, The Woodlands, Sugar Land, or Katy.

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What penalty interest and attorney’s fees apply if my insurer pays late?

For most first-party claims under Chapter 542, if the insurer violates the prompt-payment deadlines, the law provides:

• Penalty interest of 18 percent per year as damages, plus
• Reasonable attorney’s fees. See Tex. Ins. Code § 542.060(a).

For weather-related property claims that fall under Chapter 542A, the penalty interest is tied to the Texas post-judgment interest rate in the Finance Code instead of the flat 18 percent figure:

• Interest at the rate determined by the Texas Finance Code § 304.003, which is the prime rate as published by the Federal Reserve Board with a 5 percent floor and 15 percent cap. See Tex. Fin. Code § 304.003, applied by Tex. Ins. Code § 542A.007.

Texas appellate decisions have clarified that paying a claim late can trigger TPPCA interest even if the insurer later pays after an appraisal or similar process. See, for example, Barbara Technologies Corp. v. State Farm Lloyds, 589 S.W.3d 806 (Tex. 2019), and Hinojos v. State Farm Lloyds, 619 S.W.3d 651 (Tex. 2021). Those decisions explain that an insurer’s eventual payment does not automatically erase liability for delay if the statutory deadlines were violated.

How is a Texas prompt-payment claim different from “bad faith” insurance claims?

Prompt-payment claims and bad-faith claims are different legal tracks:

• TPPCA is about timing. If the insurer fails to meet statutory deadlines after it has the information it needs, the law allows statutory interest and attorney’s fees without having to prove bad intent.
• Bad faith is about conduct. Extra-contractual claims under the Insurance Code or common law focus on whether the insurer acted unreasonably in handling the claim. This can involve different damages and standards. See USAA Tex. Lloyds Co. v. Menchaca, 545 S.W.3d 479 (Tex. 2018).
• Both can apply depending on the facts. One can have a on-time but wrongful denial, or a delayed but ultimately paid claim. Courts evaluate each theory on its elements.

In short, TPPCA is designed to speed up first-party payments. Bad-faith law addresses whether the insurer acted unfairly or unreasonably in handling or denying the claim.

How do UM/UIM, PIP, and MedPay claims interact with the TPPCA in Texas? Does the TPPCA apply to UM/UIM claims?

Yes, but with an important timing caveat. Under Texas law, UM/UIM benefits are not owed until the insured establishes the liability of the underinsured or uninsured motorist and the amount of damages. The Texas Supreme Court explained that an insured generally must obtain a judgment or otherwise establish those elements before UM/UIM benefits become due. See Brainard v. Trinity Universal Ins. Co., 216 S.W.3d 809 (Tex. 2006). Because of this, the TPPCA deadlines typically do not start running on a UM/UIM claim until liability and damages are established and the insurer has the items it reasonably requested to evaluate payment.

Attorney’s fees on UM/UIM disputes may involve additional issues, including the use of the Declaratory Judgments Act. See Allstate Ins. Co. v. Irwin, 627 S.W.3d 263 (Tex. 2021). The precise fee pathway depends on the posture of the case and relief sought.

How fast must PIP benefits be paid?

• 30-day PIP payment rule. For PIP, the insurer must pay benefits “not later than the 30th day after the date the insurer receives reasonable proof of the fact and amount of expenses” and, if applicable, loss of income. See Tex. Ins. Code § 1952.156.
• 12 percent PIP interest for late payment. Overdue PIP benefits accrue interest at 12 percent per year. See Tex. Ins. Code § 1952.157.

These PIP-specific rules work alongside the general prompt-payment framework.

What about MedPay?

MedPay is a contractual medical payments coverage. It is generally treated as a first-party claim under Chapter 542, so the prompt-payment deadlines and interest rules can apply when an insurer has the necessary items to evaluate the MedPay claim.

What if the insurer asks for more information or says it needs more time?

Insurers can ask for reasonable information to evaluate a claim. The clock does not start for the accept-or-reject decision until the insurer has all items, statements, and forms it reasonably requested. See § 542.056(a). If the insurer cannot accept or reject within 15 business days after receiving those items, it must notify you, explain why, and may extend the decision period up to 45 days. See § 542.056(d).

However, once an insurer has what it reasonably needs, the deadlines are firm. Payment must follow acceptance within 5 business days, and a 60-day delay after receipt of all requested items can expose the insurer to interest and fees. See § 542.057 and § 542.058.

How can you document your claim to keep TPPCA deadlines moving?

In Texas cities like Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso, insurers often ask for similar documentation to process first-party claims. Providing a complete, organized package helps start the statutory countdown.

• Give written notice promptly. Report your first-party claim to your insurer as soon as possible, in writing if you can. Keep proof of submission and a claim number.
• Respond fully to requests. When the insurer requests items, statements, or forms, reply promptly and completely. Ask for confirmation of receipt.
• Gather medical and billing records. For PIP/MedPay, provide itemized bills, HCFA/UB forms if available, and proof of payment. For wage loss, include employer statements and pay stubs.
• Provide crash and repair documents. Police crash reports, photos, repair estimates, and invoices help on vehicle damage claims. For UM/UIM, evidence of the at-fault driver’s coverage limits and liability is important.
• Maintain a communication log. Record dates, times, and summaries of calls or emails with the insurer. Save letters and emails.
• Use one organized submission. Send a consolidated packet with a cover letter listing each enclosed item, so the insurer cannot reasonably claim it lacks needed information.
• Follow up on deadlines. After sending requested items, note the 15-business-day decision deadline and the 60-day payment cap. Be courteous but firm in follow ups.

What can plaintiffs recover and what defenses can insurers raise in TPPCA lawsuits?

• Unpaid policy benefits, if any remain due under the contract.
• Statutory interest for delay in payment. For most Chapter 542 claims, it is 18 percent per year. See § 542.060(a). For weather-related property claims under Chapter 542A, the rate is the Texas post-judgment rate under Fin. Code § 304.003, per § 542A.007.
• Reasonable attorney’s fees if the claim is successful, with specific calculations and allocations governed by the statute. See § 542.060 and § 542A.007.

What defenses do insurers raise?

• Not all requested items received. The 15-business-day decision deadline and 60-day payment cap do not run until the insurer has the items it reasonably requested. See § 542.056, § 542.058.
• Reasonable basis for 45-day extension. The insurer may extend its decision period with a written explanation. See § 542.056(d).
• UM/UIM prerequisites. For UM/UIM, payment is not owed until liability and damages are established, so TPPCA timelines may not have been triggered. See Brainard, 216 S.W.3d 809.
• Chapter 542A rate applies to weather-related property claims, not 18 percent, and presuit notice requirements may affect attorney’s fees. See Ch. 542A.
• Timely payment made. If the insurer accepted and paid within statutory periods, TPPCA penalties do not apply.

What notices and filings are required before suing under the TPPCA?

• General TPPCA claims. Chapter 542 does not impose a universal presuit notice requirement for all first-party claims, but a well-drafted demand letter with proof of the insurer’s delays often helps clarify timing and damages.
• Weather-related property claims. For actions governed by Chapter 542A, a detailed presuit notice at least 60 days before filing is required, with specific content and damage calculations. See Tex. Ins. Code § 542A.003.
• Other statutes may apply. Some cases also involve the Texas Deceptive Trade Practices Act or Insurance Code Chapter 541, which have their own presuit rules. Your legal team can map the correct notice sequence.

What does a typical timeline look like for a Texas car accident insurance claim?

Real timelines vary, but here is an example for a first-party PIP claim after a car accident in Dallas County:

1. Day 1–3: You report the PIP claim to your insurer online or by phone and follow up in writing.
2. By Day 15 (calendar): The insurer acknowledges the claim, begins the investigation, and requests medical bills and proof of loss. See § 542.055.
3. Day 20–25: You submit itemized medical bills and any wage-loss proof.
4. By Day 30 after reasonable proof: PIP benefits must be paid or will be overdue with 12 percent interest. See § 1952.156 and § 1952.157.
5. By 15 business days after the insurer has all requested items: The insurer must accept or reject the claim or explain it needs more time. See § 542.056.
6. Within 5 business days after acceptance: The insurer must pay. See § 542.057.
7. By 60 days after insurer has all items: Any delay beyond this triggers potential TPPCA interest and attorney’s fees. See § 542.058.

Car crashes are common in Texas, and first-party benefits are often critical while liability is sorted out. The Texas Department of Transportation reports high crash volumes every year. Although figures vary annually, the state regularly records hundreds of thousands of crashes statewide, affecting drivers from Harris County to Bexar County and beyond, underscoring the importance of timely first-party coverage. See the Texas Department of Transportation crash statistics pages for statewide data and trends on Texas roads maintained by TXDOT (txdot.gov).

How do attorney’s fees work in Texas prompt-payment cases?

Attorney’s fees are addressed within the prompt-payment statutes themselves:

• Chapter 542 claims. A claimant who prevails on a TPPCA claim may recover reasonable attorney’s fees in addition to interest. See § 542.060.
• Chapter 542A claims. For weather-related property claims, fees are subject to notice and allocation rules. See § 542A.007.
• UM/UIM context. Attorney’s fees may involve different statutes depending on whether the claim proceeds as a breach-of-contract action or under the Declaratory Judgments Act. See Allstate Ins. Co. v. Irwin, 627 S.W.3d 263 (Tex. 2021).

Because fees turn on the exact path your case takes, legal representation can be important to protect your rights early, position your claim under the right statutes, and document the insurer’s timing precisely.

Do city or county venues in Texas affect TPPCA cases?

Venue rules decide where a lawsuit may be filed. In civil cases, suits are often brought in the county where all or a substantial part of the events occurred, or where the plaintiff resided when the claim accrued. See Tex. Civ. Prac. & Rem. Code § 15.002. This means a claim arising from a wreck in Houston may be brought in Harris County, while a crash in San Antonio may be heard in Bexar County, and so on. Venue can influence scheduling, local practices, and jury pools, so it is part of strategic planning in Dallas County, Travis County, Tarrant County, and other venues across the state.

What common mistakes slow down Texas prompt-payment claims?

• Incomplete submissions. Sending partial records or scattered documents invites repeated requests and delays the acceptance clock.
• No written proof. A lack of written notice or receipt confirmations can make it hard to prove when the statutory deadlines began.
• Delays in responding. Waiting weeks to answer an insurer’s request can reset or stall statutory timing.
• Underestimating UM/UIM timing. Assuming UM/UIM must pay immediately without establishing liability and damages can lead to frustration and missteps. See Brainard, 216 S.W.3d 809.
• Ignoring PIP’s 30-day rule. PIP has its own payment and interest rules that can apply faster than general TPPCA timing. See § 1952.156.
• Skipping formal demand. While not always required, a detailed demand letter with a timeline and exhibits often accelerates resolution.

How can GoSuits help with a delayed insurance payment under the TPPCA?

If your first-party insurance claim is dragging, the Texas Prompt Payment of Claims Act can provide real leverage. A free consultation with a personal injury lawyer focused on first-party benefits can help you understand which deadlines apply, what documentation is still needed, and how to position your claim for the fastest lawful payment possible. This is especially important for first-party claims after car accidents in Texas cities like Houston, Dallas, Austin, San Antonio, Fort Worth, El Paso, and surrounding communities such as Arlington, Plano, Frisco, Irving, Corpus Christi, Lubbock, McAllen, Waco, Round Rock, The Woodlands, Sugar Land, and Katy.

Who is GoSuits and how do we add value to your case?

• Availability and communication. We are available 24/7 with immediate free consultation at any time. We understand that injuries do not follow business hours. We provide multilingual customer service in many languages, with 24/7 Spanish and Farsi speakers ready to assist. From the first call, you speak with a real team member who listens, gathers the right facts, and starts mapping next steps for your first-party claim.
• No win, No Attorney Fees. Our fee policy is simple and transparent. We offer No win, No Attorney Fees, explained here: No win, No Attorney Fees. There are no hidden administrative fees. We discuss costs clearly and keep you updated on case expenses as your matter progresses.
• Tools and case workflow that speed claims. We built a proprietary personal injury software used only by our firm. It helps us move faster and more accurately through investigation, medical record retrieval, preparing a thorough insurance demand, negotiation, and if needed, filing a lawsuit and managing discovery. We are a law firm that looks ahead of the curve to beat insurance companies at their own game by organizing evidence and timing around the exact Texas Insurance Code deadlines. That includes tracking the 15-day acknowledgment, the 15-business-day accept-or-reject window, the 5-business-day payment rule, the 60-day payment cap under Chapter 542, and the PIP 30-day rule.
• Experience and track record. We have 30 years of combined experience. We have litigated more than 1,000 cases, with settlement and verdict results published on our website: Past Cases. In complex matters such as product liability, 18-wheeler collisions, brain injury, spinal injury, and other severe injury litigation, we hire qualified witnesses in Texas to testify to establish liability and damages. We litigate severe injury and complex cases in Texas, California, and Illinois. Our recognitions include:

• #1 Settlements and verdicts across multiple U.S. counties according to TopVerdict.
• Top 100 Settlement in Texas.
• Sean Chalaki named Top 40 Under 40 by National Trial Lawyers.
• Recognized by Best Lawyers in 2023, 2024, and 2025.
• Selected to Super Lawyers since 2021.

• How we handle your Texas prompt-payment claim. We review your policy, identify every first-party coverage that can pay now (PIP, MedPay, UM/UIM), and prepare a complete, indexed claim file so the insurer cannot fairly say it lacks information. We track statutory timing in real time and document every missed deadline to support interest and attorney’s fee claims. For weather-related property losses, we follow Chapter 542A’s presuit notice and interest calculations precisely.
• Local presence and immediate help. We serve clients across Texas from offices positioned to reach you quickly, and we have an attorney and staff at all locations ready to help 24/7. We can meet by phone, video, or in person. Whether you are in Harris County, Dallas County, Travis County, Bexar County, Tarrant County, or nearby, our team moves fast to gather records, submit a clean claim package, and press for payment under the deadlines in Chapter 542. If the insurer stalls, we are prepared to escalate within the civil rules.

We are not a volume firm. We focus on providing quality legal services, deliberate case planning, and clear communication. That approach aims to reduce delay, protect your health and financial recovery, and push your claim to resolution under Texas prompt-payment law.

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Community involvement and professional leadership

• Community engagement. We are active in schools, local chambers of commerce, and non-profit foundations in Texas communities.
• Professional leadership. Team members serve on boards of several trial lawyer organizations, including the Texas Trial Lawyers Association, and participate in consumer protection groups focused on fair insurance practices.

Searching for help near you after a crash? Many clients find us by looking for a Texas insurance lawyer near me or Texas car accident attorney near me. We are ready to talk now and begin organizing your first-party claim under the Texas Prompt Payment of Claims Act.

References and resources

• Texas Insurance Code, Chapter 542 Prompt Payment of Claims: https://statutes.capitol.texas.gov/Docs/IN/htm/IN.542.htm
• Texas Insurance Code, Chapter 542A Certain Consumer Actions Related to Property Insurance: https://statutes.capitol.texas.gov/Docs/IN/htm/IN.542A.htm
• Texas Finance Code § 304.003 Post-judgment interest rate (incorporated into 542A damages): https://statutes.capitol.texas.gov/Docs/FI/htm/FI.304.htm#304.003
• Texas Insurance Code, PIP provisions §§ 1952.151–.157, including 30-day payment and 12 percent interest: https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1952.htm#1952.151
• Texas Civil Practice and Remedies Code § 15.002 General venue rule: https://statutes.capitol.texas.gov/Docs/CP/htm/CP.15.htm#15.002
• Texas Judicial Branch Supreme Court of Texas opinions and docket: https://www.txcourts.gov/supreme/
• Texas Department of Transportation statewide crash information and safety resources: https://www.txdot.gov/

Key Texas Supreme Court decisions discussing prompt-payment issues include Barbara Technologies Corp. v. State Farm Lloyds, 589 S.W.3d 806 (Tex. 2019); Ortiz v. State Farm Lloyds, 589 S.W.3d 127 (Tex. 2019); Hinojos v. State Farm Lloyds, 619 S.W.3d 651 (Tex. 2021); USAA Tex. Lloyds Co. v. Menchaca, 545 S.W.3d 479 (Tex. 2018); Brainard v. Trinity Universal Ins. Co., 216 S.W.3d 809 (Tex. 2006); and Allstate Ins. Co. v. Irwin, 627 S.W.3d 263 (Tex. 2021). You can look these up on the Supreme Court of Texas website or through Google Scholar.

Frequently asked questions

What is the penalty interest rate for late payment on most first-party claims?

18 percent per year plus reasonable attorney’s fees. See Tex. Ins. Code § 542.060.

Does the 18 percent rate apply to weather-related property claims?

No. Those claims are governed by Chapter 542A, which ties interest to the Texas post-judgment rate under the Finance Code. See § 542A.007 and Fin. Code § 304.003.

Do TPPCA deadlines apply to third-party liability claims against the other driver’s insurer?

Generally no. The TPPCA addresses first-party claims under your own policy.

How quickly must PIP be paid?

Within 30 days of receiving reasonable proof, or it is overdue and accrues 12 percent interest per year. See § 1952.156 and § 1952.157.

When do UM/UIM prompt-payment deadlines start?

Usually after liability and damages are established under Brainard v. Trinity Universal Ins. Co., 216 S.W.3d 809 (Tex. 2006), and the insurer has requested items necessary to evaluate payment.