Texas insurers granted claims handling extension post-Beryl
Texas insurers granted claims handling extension post-Beryl | Insurance Business America
Catastrophe & Flood
Texas insurers granted claims handling extension post-Beryl
Order applies to 67 counties
Catastrophe & Flood
By
Terry Gangcuangco
Texas insurers now have more time to manage claims related to Hurricane Beryl after the state insurance regulator approved a 15-day extension to the legally mandated deadlines for processing such claims, according to an AM Best report.
Citing an August 18 order by Texas Insurance Commissioner Cassie Brown, AM Best noted that the extension is applicable to the 67 counties that reported losses due to Beryl. It was highlighted that the high volume of claims following the hurricane has made it difficult for insurers to adhere to the standard processing timeline.
AM Best pointed out that admitted market insurers are typically required to acknowledge a claim, begin an investigation, and request necessary documentation from policyholders within 15 business days of receiving a claim.
Following this, insurers usually have another 15 business days to inform the policyholder of their decision to accept or reject the claim, provided they have received all required documents. Insurers can take additional time if needed but must notify the policyholder beforehand.
Once a claim is accepted, either fully or partially, payment must be issued within five business days. The likes of surplus lines carriers, however, are allowed more time under Texas law.
Meanwhile, Texas regulations permit the insurance commissioner to extend the deadlines after a catastrophe if insurers submit a request.
In the case of Beryl, the regulator’s order indicated that a group of three insurers had received between 18,300 and 18,500 residential property claims, along with 2,500 automobile claims, all tied to the hurricane.
“Given the significant volume of losses and claims, which exceeded the standards set by TDI for a possible extension, we value the agency’s decision,” AM Best quoted Insurance Council of Texas communications and public affairs director Rich Johnson as saying in a statement.
“Regardless of the extension, insurance companies remain committed to handling claims promptly and paying what’s owed under the policy, recognizing the Houston area has already faced a challenging storm season this year.”
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