The Texas Department of Insurance (TDI) has announced that the claims-handling deadlines imposed by Texas prompt-payment laws are extended by 15 days. The extension will assist carriers in responding to the Coronavirus pandemic and results from the combined operation of actions taken by Texas Governor Greg Abbott and Texas Insurance Commissioner Kent Sullivan. A copy of the Department’s bulletin announcing the extension can be found here. The bulletin also states that TDI expects insurers to work with policyholders who are dealing with financial difficulties associated with the pandemic, including implementing grace periods, premium payment suspensions (but not forgiveness), and payment plans. These announcements are part of the Department’s evolving response to the Coronavirus outbreak as noted in our previous blog entry found here.
Visit our COVID-19 Resource Center often for up-to-date information to help you stay informed of the legal issues related to COVID-19.