What is the penalty for violating Texas prompt payment laws

What is the penalty for violating texas prompt payment laws - Texas All-Lines Adjuster Exam Prep

Question

What is the penalty for violating Texas prompt payment laws?

Answers

A warning letter
correct
The claim amount plus 18% annual interest and reasonable attorney's fees
No penalty
A small fine

Explanation

Correct Answer Is:

Correct Answer: B) The claim amount plus 18% annual interest and reasonable attorney's fees
If an insurer violates Texas prompt payment deadlines (15 days to accept/reject after receiving all requested items, 5 days to pay after acceptance), it is liable for the full claim amount plus 18% annual interest calculated from the date payment was due, plus the claimant's reasonable attorney's fees. This creates powerful consumer protection and strong incentives for insurers to handle claims promptly and efficiently.

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