Insurance Companies are supposed to promptly make payment of claims made by an insured. A May 2021, case from the Fifth Circuit Court of Appeals confirms this. The style of the opinion is Hyewon Shin v. Allstate Texas Lloyd’s.
In this case, the insured, Hyewon Shin asserted a claim for penalties under the Texas Prompt Payment of Claims Act. The relevant statutes are Sections 542.058 and 542.060. The lower level court granted summary judgment in favor of Allstate, concluding that Allstate’s pre-appraisal payment to Shin was both timely and reasonable as a matter of law notwithstanding that the final appraisal amount, $25,944.94 was 5.6 times greater than the pre-appraisal payment of $4,616.63.