When Carriers Delay Payment, Texas Law Responds
Texas Prompt Payment of Claims Act
If your insurance carrier delayed payment after you submitted everything they needed, Texas law may entitle you to penalty interest, even if the claim is already closed.
Most policyholders — and even many Public Adjusters — don’t realize that Texas law doesn’t just require insurers to pay valid claims. It gives them a deadline. Under Chapters 542 and 542A of the Texas Insurance Code, if a carrier delays payment after receiving all required documentation, they may owe penalty interest — often up to 18% annually — on top of what they already paid. It’s money that should have been part of the original payout, but rarely gets talked about. Carriers aren’t going to volunteer this information, and that silence is costing people thousands.
At Texas Prompt Payment, we help policyholders and public adjusters uncover what’s still owed after the claim is settled. If a carrier took too long to pay, we’ll review the claim at no cost and connect qualifying cases with a trusted Texas law firm that can pursue the penalty interest on your behalf. The claim stays closed. The process is straightforward. And if it qualifies, it could result in thousands in additional compensation. Delays cause stress, financial disruption, and lost time. This law helps make that right — and it starts with a free review
"Too many people leave money on the table after their claim is paid — and most don’t even know it. The Texas Prompt Payment Act gives us a tool to fight back if a carrier drags their feet on a Texas based property damage claim. That’s why I’m backing this program and encouraging every Public Adjuster I know to check their closed files and send them in for review."
Frequently Asked Questions
The Texas Prompt Payment Act (Section 542A of the Texas Insurance Code) holds insurance carriers accountable for delays in paying valid property damage claims. If a carrier delays payment after receiving all necessary documentation, they may owe penalty interest — typically around 18% of the claim amount.
We review settled property damage claims to determine if they may qualify for penalty interest under the Texas Prompt Payment Act. If a claim meets the initial criteria, we refer it to a licensed law firm for a free legal review.
No. Texas Prompt Payment is not a law firm and does not provide legal advice. We are an independent intake and referral platform that connects qualified claims with legal professionals who specialize in these types of cases.
Yes. There is no cost to submit a claim for review or to be referred to a law firm. If your claim is accepted by a participating attorney, any legal fees will be handled between you and the law firm directly.
No. This process applies to already-settled claims. It does not involve disputing or undoing the original settlement. Penalty interest is a separate legal matter based on payment delays, not the claim’s validity or outcome.
Our screener will guide you through a few simple questions, including:
– Date the claim was filed
– Date and amount of final payout
– Whether the payout occurred 8+ months after filing
– Whether the claim was for a Texas-based property
– Any documentation related to payment delay
If you're a public adjuster, you can also submit on behalf of a client
- We review your submission to confirm it meets basic eligibility criteria.
- If it appears to qualify, we refer it to a licensed attorney for a free legal review.
- If the attorney determines there’s a valid case, they may contact you to discuss next steps.
Only if your claim qualifies and you agree to be contacted. Our form gives you (or your client) the option to indicate willingness to speak with a law firm before any outreach is made.
We may receive a referral fee from the law firm if a claim we submit is accepted and results in a recovery. This does not affect your potential compensation and you will never be charged by us.
This may need to change based on what is agreed on for referrals.
Yes — and we encourage it. If you're a licensed public adjuster with settled Texas claims that experienced payment delays, you can submit on behalf of your client. We’ll keep you in the loop and recognize your role in the process.
Reach out to us anytime using the contact form on this page and a member of our team will be happy to help.
