P&CTexasmedium
An insurer receives all required claim documentation on March 1. It pays the claim on May 5 — 65 days later. Under Texas law, the insurer owes the claimant damages of 18% per year plus attorney's fees because it violated which statute?
ATIC §542.055 — insurer failed to acknowledge the claim within 15 days
BTIC §541.060 — insurer engaged in unfair settlement practices
CTIC §542.056 — insurer failed to accept or reject the claim within 15 business days
TIC §542.058 — insurer failed to pay within 60 days of receiving all required items
Why this is the answer
TIC §542.058 establishes the 60-day clock from the date the insurer receives all required claim items, statements, and forms. If the insurer misses that deadline, it owes 18% per annum interest plus reasonable attorney's fees on the unpaid amount — automatically, without requiring proof of bad faith. This is distinct from §542.055 (the 15-day acknowledgment requirement), §542.056 (accept/reject within 15 business days), and §541.060 (unfair settlement practices, which requires a separate findings process). The 65-day gap in the stem puts the insurer squarely inside the §542.058 penalty window.
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