All insurance lawyers understand that there are time limits within which an insurance company must accept and pay the claim or else deny the claim. And it is also understood that the insured making the claim has an absolute duty to cooperate with the claims investigation. But what about a situation where the insurance company needs to be able to get information from a third party, such as medical providers?
What is clear is that if the insurance company reasonably requests information from the claimant, deadlines for payment of the claim are postponed until the insurance company receives that information.
In contrast, the Prompt Pay Statute does not expressly extend any deadlines while the insurance company awaits information from third parties. However, if the insurance company cannot accept or reject a claim because it is still waiting for such information, Texas Insurance Code, Section 542.056(d) allows the insurance company a one-time 45 day extension.