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Texas Insurance Code - Section 542.056. Notice Of Acceptance Or Rejection Of Claim

Legal Research Home > Texas Laws > Insurance Code > Texas Insurance Code - Section 542.056. Notice Of Acceptance Or Rejection Of Claim

§ 542.056. NOTICE OF ACCEPTANCE OR REJECTION OF 
CLAIM.  (a) Except as provided by Subsection (b) or (d), an insurer 
shall notify a claimant in writing of the acceptance or rejection of 
a claim not later than the 15th business day after the date the 
insurer receives all items, statements, and forms required by the 
insurer to secure final proof of loss.
	(b)  If an insurer has a reasonable basis to believe that a 
loss resulted from arson, the insurer shall notify the claimant in 
writing of the acceptance or rejection of the claim not later than 
the 30th day after the date the insurer receives all items, 
statements, and forms required by the insurer.
	(c)  If the insurer rejects the claim, the notice required by 
Subsection (a) or (b) must state the reasons for the rejection.
	(d)  If the insurer is unable to accept or reject the claim 
within the period specified by Subsection (a) or (b), the insurer, 
within that same period, shall notify the claimant of the reasons 
that the insurer needs additional time.  The insurer shall accept or 
reject the claim not later than the 45th day after the date the 
insurer notifies a claimant under this subsection.

Added by Acts 2003, 78th Leg., ch. 1274, § 2, eff. April 1, 2005.          

Last modified: August 11, 2007