When your insurance company acts in bad faith — denying valid claims, delaying payment, or misrepresenting your policy — Texas law provides powerful remedies. CDF Law pursues bad faith claims against Texas insurers throughout Houston.
What Constitutes Bad Faith Under Texas Insurance Code
Texas Insurance Code §541.060 defines unfair settlement practices, including: misrepresenting material policy facts, failing to attempt a good faith settlement, failing to conduct a reasonable investigation, and refusing to pay without a reasonable investigation. These violations can give rise to additional damages beyond your policy benefits.
Statutory Penalties Available Under Chapter 542
Texas Insurance Code Chapter 542 (the Prompt Payment of Claims Act) requires insurers to acknowledge claims within 15 days, accept or reject within 15 business days of receiving all items, and pay within 5 business days of accepting. Violations carry statutory interest of 18% per year on unpaid amounts plus attorney's fees.