What is the Texas Unfair Claim Settlement Practices Act?
Getting your insurance claims filed after an auto accident can be a headache, and insurance companies are often reluctant to pay legitimate claimants the money they’re rightfully owed.
A car or motorcycle accident is stressful enough, but the problems that the insurance companies construct in the process of getting valid insurance claims adds to the mental trauma of the accident. Insurance companies fight claims like your every single day. If you’re not intimately familiar with the process of bringing an injury claim and fighting it in court, we strongly advise you to seek assistance from a motor vehicle accident lawyer who will represent your claim to the insurer and advocate on your behalf.
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.
What constitutes a violation of the Unfair Claim Settlement Practices Act?
- 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 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.
If you believe the insurance company is in violation of Texas’ Unfair Claim Settlement Practices Act, we ask that you call our law firm for a free consultation. We can advise you of your rights moving forward, and can even handle your claim for no out-of-pocket costs. Call us today (toll-free) at 1-877-405-4313.