How Long Does an Insurance Company Have to Respond in Texas? The 15-15-5 Rule

You file a claim. Then you wait. A week passes. Then two. You leave voicemails. You send emails. The adjuster says they are “working on it.” So you start to wonder: is any of this normal?

Texas law has a clear answer. It is called the 15-15-5 rule. This rule is written directly into the Texas Insurance Code under Chapter 542. As a result, every insurance company in Texas must follow it. When they do not, there are real financial consequences — including an 18 percent interest penalty.

Below, you will find what the rule means, how it works in practice, and what to do if your insurer is not following it.

What Is the 15-15-5 Rule?

The 15-15-5 rule sets three legal deadlines for property and casualty insurance claims in Texas. These deadlines come from Texas Insurance Code Chapter 542, also known as the Prompt Payment of Claims Act.

Here are the three deadlines:

1. 15 days to acknowledge the claim
After you file a claim, the insurer has 15 days to confirm receipt in writing. This is not approval or payment. It is simply confirmation that they received your claim. The insurer must also begin an investigation during this window.

2. 15 business days to accept or reject
Once you submit all requested documents — such as inspection reports, repair estimates, and proof of loss forms — the insurer has 15 business days to notify you in writing. They must accept or reject your claim. If they need more time, they can extend this to 45 days. However, they must send written notice that states a specific reason for the delay.

3. 5 business days to pay after acceptance
Once the insurer accepts the claim and agrees to pay, they have 5 business days to issue payment. This deadline has no built-in extension.

Together, these three steps define how every Texas insurance claim should move forward.

“Acknowledge” vs. “Accept or Reject” — What Is the Difference?

These two terms are easy to confuse. In fact, insurance companies sometimes blur them together. When that happens, it can create the impression that things are moving when they are not.

Acknowledgment means the insurer confirmed they received your claim. It is the first step. It says nothing about whether the claim will be paid. For example, an insurer can acknowledge a claim and then take weeks before making a decision.

Acceptance or rejection is the actual coverage decision. The insurer reviews the facts, applies your policy terms, and either agrees to pay or denies the claim in writing. This step requires a real answer — not a holding response.

The distinction matters because it tells you which clock is running. If the insurer is still in the acknowledgment phase, they may still be in compliance. However, if they have received everything they asked for and have not responded in 15 business days, they may not be.

The Penalty for Missing Deadlines

Texas Insurance Code Section 542.060 spells out what happens when an insurer misses a Prompt Payment deadline. Specifically, the insurer owes interest on the unpaid claim at 18 percent per year, plus reasonable attorney fees.

This is not a minor penalty. For example, on a $40,000 roof claim delayed by 90 days, the interest penalty alone exceeds $1,700. If the case goes to litigation, the attorney fees the insurer owes can easily exceed the original claim amount.

The penalty starts on the date the payment was due. You do not need to prove bad faith — only that the insurer missed a statutory deadline. In addition, the Texas Department of Insurance accepts consumer complaints against insurers who fail to follow prompt payment rules.

Real-World Example: A Homeowner Files a Hail Claim

Here is how this timeline plays out in practice.

April 12: A hailstorm damages a roof in North Texas. The homeowner calls their insurer and files a claim the same day.

By April 27 (15 calendar days later): The insurer must send written acknowledgment. This confirms the claim and states that an investigation is underway.

April 30: The insurer’s adjuster inspects the roof. The homeowner then submits the requested contractor estimate.

By May 21 (15 business days after all items received): The insurer must notify the homeowner whether the claim is accepted or denied. If they need more time, they must send written notice with a reason and a new deadline no later than 45 days out.

May 21: The insurer accepts the claim and agrees to pay $18,500.

By May 28 (5 business days after acceptance): The insurer must issue payment.

If the insurer pays on May 28, they are in compliance. However, if the check does not arrive until June 15 with no explanation, the 18 percent interest clock has been running since May 28.

What to Do If Your Insurer Is Dragging Their Feet

If you are past the statutory deadlines and have not received a response, do not assume the insurer is simply busy. Instead, take these steps:

1. Document everything. Keep a written log of every call, email, and letter — with dates. Note the name of every person you spoke to. Also write down what they said. This record will matter if you need to escalate.
2. Send a written demand. Put your request in writing. An email with a clear timestamp creates a record. State when you filed the claim, when you submitted all required documents, and that the statutory deadline has passed.
3. File a complaint with the Texas Department of Insurance. TDI has authority to investigate insurers for prompt payment violations. You can file online at tdi.texas.gov. This creates a formal record and often prompts faster action.
4. Contact your agent. If you purchased through a licensed agent, they have a relationship with the carrier. Use them to help navigate a dispute.
5. Request a written status update. Ask the insurer to confirm in writing where your claim stands and what, if anything, is still outstanding.

When to Involve an Attorney

Not every delayed claim requires a lawyer. But some do. Consider consulting an attorney if any of the following apply:

• The insurer has missed multiple statutory deadlines without written explanation.
• Your claim was denied and you believe the denial is wrong or unsupported by your policy.
• The insurer’s payment offer is well below the documented cost of repairs.
• The insurer has stopped responding entirely.
• You are being asked to sign a release or accept a settlement you are not comfortable with.

The 18 percent interest penalty and attorney fee provision under Section 542.060 can make these cases worth taking for plaintiff’s attorneys. Also, you do not have to figure out if you have a case on your own. An initial consultation will tell you whether there is something to pursue.

This site does not provide legal advice and is not affiliated with any law firm. If you need legal guidance, consult a licensed Texas attorney.

Know Your Policy. Know Your Rights.

The Texas Legislature created the 15-15-5 rule for a reason. Delays cost homeowners money. They also put consumers in a vulnerable position while they wait. So the law gives you clear benchmarks — and real remedies when those benchmarks are missed.

You do not need to memorize the statute number. You need to know three things:

• The clock starts when you file and continues through each phase.
• You have the right to a written response within defined windows.
• Missing those windows creates a financial consequence for the insurer.

If you have questions about your policy or what your insurer must do, that is what a licensed agent is for. David Offutt is a licensed Texas insurance agent and can answer plain-English questions about your coverage.

Frequently Asked Questions

Does the 15-15-5 rule apply to all types of insurance claims in Texas?

The Prompt Payment of Claims Act under Texas Insurance Code Chapter 542 applies broadly to property and casualty claims. This includes homeowners, auto, and commercial property. However, life insurance and health insurance claims fall under separate statutes. If you are unsure which rules apply to your claim, the Texas Department of Insurance maintains consumer guides by coverage type.

What counts as “all required items” for the 15-business-day clock to start?

The 15-business-day window opens once the insurer has received everything it needs to evaluate the claim. This includes proof of loss forms, inspection reports, contractor estimates, and any other documents the insurer requested. If the insurer keeps adding new requests without explanation, that may itself be a compliance issue. Therefore, document every request and every submission with dates.

Can an insurance company extend the 15-business-day deadline?

Yes. Under Texas Insurance Code Section 542.056, an insurer can extend the decision deadline up to 45 days from when it received all required items. However, the extension must be in writing, must state a specific reason, and must give a new target date. A vague statement that more time is needed does not qualify as a valid extension.

What if my claim is denied — do the same deadlines apply?

Yes. A denial must also be delivered within the 15-business-day window. A denial is a decision. As a result, the insurer must put it in writing with an explanation. If they deny the claim after the deadline has passed, the late-payment penalty provisions of Section 542.060 may still apply.

Do I need an attorney to collect the 18% interest penalty?

Not necessarily. The penalty accrues automatically when the insurer misses a deadline. However, collecting it typically requires formal legal action. Attorney fees are part of the remedy the law provides. So an initial consultation with a Texas insurance attorney will help you decide whether the amount at issue justifies the process.

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About the Author: David A. Offutt is a licensed Texas insurance agent (TX License #1465807) with more than 20 years of experience. He holds an MS in Economics from the University of North Texas. He is the published author of Understanding Insurance in Simple English (Amazon) and the founder of Texas Real Estate Academy and 123AceTheTest. He writes for insuredintexas.com to help Texas consumers understand their coverage before they need to use it. Questions about your policy or coverage? Visit 817insurance.com

This post is for informational purposes only and does not constitute legal advice. Policy terms and statutes may change. Consult a licensed Texas attorney for legal guidance specific to your situation.