Tex.
Ins. Code Section 542.060
Liability for Violation of Subchapter
(a)
Except as provided by Subsection (c), if an insurer that is liable for a claim under an insurance policy is not in compliance with this subchapter, the insurer is liable to pay the holder of the policy or the beneficiary making the claim under the policy, in addition to the amount of the claim, interest on the amount of the claim at the rate of 18 percent a year as damages, together with reasonable and necessary attorney’s fees. Nothing in this subsection prevents the award of prejudgment interest on the amount of the claim, as provided by law.(b)
If a suit is filed, the attorney’s fees shall be taxed as part of the costs in the case.(c)
In an action to which Chapter 542A (Certain Consumer Actions Related to Claims for Property Damage) applies, if an insurer that is liable for a claim under an insurance policy is not in compliance with this subchapter, the insurer is liable to pay the holder of the policy, in addition to the amount of the claim, simple interest on the amount of the claim as damages each year at the rate determined on the date of judgment by adding five percent to the interest rate determined under Section 304.003 (Judgment Interest Rate: Interest Rate or Time Price Differential Not in Contract), Finance Code, together with reasonable and necessary attorney’s fees. Nothing in this subsection prevents the award of prejudgment interest on the amount of the claim, as provided by law. Interest awarded under this subsection as damages accrues beginning on the date the claim was required to be paid.
Source:
Section 542.060 — Liability for Violation of Subchapter, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.542.htm#542.060 (accessed Apr. 29, 2024).
