15-Day Rule Violations in Houston Insurance Claims

Texas law does not allow insurance companies to delay a personal injury or property damage claim indefinitely. Once a policyholder files a claim, the insurer is required to act within specific deadlines 

Under the Texas Insurance Code, once an insurer receives all the information it needs to evaluate a claim, it generally must notify the policyholder of its decision, i.e., to accept, deny, or request more information, within 15 business days. 

If the insurer needs additional time to investigate, it may extend this period, but it must notify the policyholder in writing and explain the reason for the delay. In most circumstances, the insurer cannot exceed an additional 45 days without continuing to provide updates.

Texas imposes these deadlines because insurance companies have an incentive to delay claims. The longer a claim sits unresolved, the longer the insurer holds onto its money, and the more pressure builds on the policyholder to accept a low-value settlement or walk away. Our Houston-based law firm is prepared to take on bad faith insurance claims and fight for your rights.

Violations of the 15-Day Rule

Unfortunately, 15-day rule violations are common in the insurance industry. Typical violations include:

• Failing to acknowledge receipt of a claim within the required timeframe
• Requesting documentation that was already provided as a pretext for delay
• Issuing repeated extension notices without a genuine investigative basis
• Failing to communicate a decision even after the investigation is complete
• Using delay tactics to push a policyholder past their own financial limits

A violation of the 15-day rule is not a small matter and may suggest bad faith on the part of an insurer. However, proving a violation requires a clear timeline regarding the date the claim was filed, the date the insurer had all necessary information, and the date a decision was communicated (if at all). Insurers often try to blur this timeline through vague correspondence or by claiming the investigation was still ongoing.

Compensation Available in a Bad Faith Claim

When an insurer unreasonably delays a claim or fails to comply with applicable statutory requirements, policyholders may have rights beyond simply recovering the benefits owed under the policy.

Depending on the circumstances and applicable law, a policyholder may be entitled to recover:

• The amount due under the insurance policy
• Interest on delayed or unpaid benefits
• Attorney’s fees and litigation costs
• Consequential damages caused by the delay
• Additional statutory damages or penalties
• Other relief available under bad faith or unfair claims handling laws

These additional remedies are designed to hold insurers accountable and discourage unreasonable delays and unfair claims practices.

Contact an Experienced Bad Faith Attorney for Help

If an insurance company has failed to comply with statutory deadlines, an experienced insurance attorney can evaluate whether you may have claims beyond the value of the original policy benefits.

Your attorney can reconstruct the claims timeline from your file and the insurer’s own correspondence, identify whether the statutory deadlines were missed, and determine whether the delay was a bad-faith tactic. 

If you believe your insurer has missed these deadlines on your Houston claim, contact The Doan Law Group for help understanding your legal rights.