How long does an insurer have to pay a claim after accepting coverage under texa - Texas All-Lines Adjuster Exam Prep

Question

How long does an insurer have to pay a claim after accepting coverage under Texas prompt payment law?

Answers
  1. correct
Explanation
Correct Answer Is:
Correct Answer: B) 5 business days
Under Texas Insurance Code §542.055-542.061, once an insurer accepts coverage and agrees to pay a claim, it must issue payment or tender it within 5 business days. This creates tight operational deadlines. Combined with the 15-business-day acceptance/rejection deadline, Texas law forces disciplined, prompt claim handling. Violations result in liability for the claim amount plus 18% annual interest and attorney's fees.

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