The Texas Prompt Payment Act
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The Texas Prompt Payment Act in Austin
Insurance is a highly regulated industry in the state of Texas. If you are around Austin, then you need to understand the prompt payment requirements placed upon insurance companies. One might believe that all insurance companies are willing to deal fairly clients, especially to those who diligently pay into their policy. In exchange, you should receive benefits when you have to cash in on your policy. All too often, though, the insurance companies do not comply with their duty to act in good faith. When they delay, Texas law can protect you. If you end up in this tight spot, the attorneys at Zinda Law Group are willing to help.
The Texas Prompt Payment Act
Chapter 2251 of the Texas Government Code outlines the requirements for payment in the state. That law requires that payments be made within 30 days of their due date. One of the most important provisions of the law is that when an insurance company is late with its payment, it must pay interest charges. This is a powerful law that can act in the favor of consumers when insurance companies drag their feet on paying out a proper claim.
Insurers’ Duty to Respond to a Proper Claim
Insurance agreements are, in essence, contracts that must be respected like any other contractual agreement. An insurance provider has the duty to pay on the due date as long as you file a proper claim. The state statute does not apply unless the insurance company has received from you a claim with all of the required information. If you are having trouble filing a proper claim, you should get assistance from an attorney. The lawyers at Zinda Law Group help clients in the Austin area file claims that must be respected by insurance companies.
How an Attorney can Protect Your Rights Under this Law
The good news for you is that the law is on your side when it comes to late payments from insurance companies. The bad news, though, is that this law will be no use unless you have an attorney who is able to utilize it. In order to recover damages against your insurance provider or force them to pay your claim, you will need a good lawyer who can help file a lawsuit. A strong attorney will know how and when to file a lawsuit in hopes of forcing the insurance provider into a settlement.
Getting Help from Experienced Attorneys
As you might guess, this is a nuanced field of law. You should seek out an attorney who has experience with insurance companies. A good attorney will be well versed in the Prompt Payment Act. The lawyers at Zinda Law Group understand this statute and others and they work hard for clients when those clients are at the mercy of powerful insurance companies.
