What is the Texas Unfair Claim Settlement Practices Act?
Getting your insurance claims filed after an auto accident can be a headache as insurance companies are often reluctant to pay back the dues to the legitimate claimant of the insurance money.
A car or motorcycle accident is stressful enough, the problems that the insurance companies construct in the process of getting valid insurance claims adds to the mental trauma of the accident. It is at this point that you should seek assistance from a vehicle accident lawyer, who will represent you to the insurer. The lawyer will tell you how to deal with the insurance companies in order to receive the fair amount of insurance money that you so justly deserve.
Before choosing the lawyer, it is worthwhile to know how the lawyer can assist you in your grievances against the insurance company. It is also worthwhile that you are aware of the legal weapons that the lawyer can implement in order to get you the rightful claims from the insurance company. The Texas Unfair Claim Settlement Practices Act, which protects the rights of the policyholder in the face of unjustified actions from an insurance company, is one of the main weapons in the hands of a car wreck lawyer.
According to this law, an insurer is legally prohibited from engaging in any kind of unfair claim settlement practices. You should therefore know what constitutes an unfair claim settlement practice.
These are the main stipulations of the unfair claim settlement law:
The insurer knowingly misrepresents the facts or policy provisions related to the policy coverage in issue. The auto insurance company cannot enforce policy provisions that were altered by the company without your notice or consent.
The insurance company should acknowledge your claim within a limited time-period. According to the Texas law, this time-period is stipulated to 15 days. This means that your auto insurer should acknowledge that you have filed a policy claim and start an investigation after seeking the various relevant documents and statements within 15 days of filing your claim.
The insurer should maintain a good faith practice of initiating a prompt and fair settlement of a reasonable claim from your side.
The insurer is legally prohibited from delaying your insurance claim without a good reason. The insurer should provide the claimant with a justified explanation about the delay in policy claims.
The insurance company cannot force the claimant to sue the company. This means that an insurance company with lots of lawyers in its payroll cannot just say, “sue us” to the claimant.