The Texas Prompt Payment of Claims Act (TPPCA) sets forth rules for payment of claims and penalties for violation of those rules. Here is a case that deals with the TPPCA when there is an appraisal involved. The case is from the Northern District of Texas, Dallas Division, and is styled, Corinne Pearson v Allstate Fire and Casualty Insurance Co.
In February 2019, Pearson filed suit against Allstate alleging violations of the TPPCA and breach of contract and bad faith. We will look at the TPPCA claim. Allstate obtained an abatement of the case pending an appraisal of the damage to Pearson’s property. In June the parties notified the Court that the appraisal was completed and Allstate filed this summary judgment motion.
The facts in evidence here were that Pearson had a policy with Allstate. Pearson timely submitted a claim for damages. After an inspection by Allstate there resulted a repair estimate that was lower than the policy deductible and this lawsuit was filed.