Step 1: 15 Days to Acknowledge and Start Investigating

Once an insurance company receives notice of a car accident claim, it has 15 days to take three key actions:

• Acknowledge receipt of the claim
• Begin investigating the claim
• Request any documents, statements, or forms reasonably needed to evaluate the claim

This requirement comes from Tex. Ins. Code § 542.055 and has been reinforced by Texas courts. In Lamar Homes, Inc. v. Mid-Continent Casualty Co., the Texas Supreme Court confirmed that insurers must strictly follow this 15-day deadline.

If the insurer needs more information later, it may make additional reasonable requests—but it cannot use repeated requests to justify indefinite delays.

Step 2: 15 Business Days to Accept or Deny the Claim

Once the insurance company receives all requested information, it must notify the claimant in writing whether it is accepting or rejecting the claim within 15 business days.

This deadline is set by Tex. Ins. Code § 542.056. Courts have made clear that insurers cannot delay this decision simply by staying silent or claiming the investigation is “ongoing” without justification.

Step 3: 5 Business Days to Pay an Approved Claim

If the insurer accepts the claim, it must issue payment within five business days of notifying the claimant. This requirement is found in Tex. Ins. Code § 542.057.

Failure to pay on time even after accepting liability can trigger serious consequences under Texas law.

What Happens If the Insurance Company Delays Too Long?

If an insurer delays payment for more than 60 days after receiving all required documentation, Texas law allows the injured party to seek penalties, including:

• 18% annual interest on the amount owed
• Attorney’s fees
• Court costs

These penalties are outlined in Tex. Ins. Code § 542.060 and have been enforced in cases such as Barbara Technologies Corp. v. State Farm Lloyds and Hinojos v. State Farm Lloyds. Courts have repeatedly emphasized that insurers face real financial consequences for missing statutory deadlines.

Why These Deadlines Matter for Accident Victims

Insurance delays can cause serious hardship especially when accident victims are dealing with medical bills, lost income, and vehicle repairs. The TPPCA exists to level the playing field and ensure insurers handle claims promptly and fairly, not on their own timeline.

If an insurance company is dragging its feet, ignoring deadlines, or giving vague explanations, that delay may violate Texas law.

Key Takeaways

• Insurers have 15 days to acknowledge and investigate a claim
• They have 15 business days to accept or deny after receiving required documents
• Accepted claims must be paid within 5 business days
• Unreasonable delays can result in 18% interest and attorney’s fees

Understanding these deadlines can help accident victims recognize when an insurer may be acting in bad faith.

Is an insurance company delaying your car accident claim?

Wyde and Associates can review your case, enforce claim deadlines, and pursue penalties when insurers fail to follow the law. Contact us today to protect your rights.