PJC Business

PJC 102.26

DTPA/I NSURANCE C ODE

Extension of deadline—insurer’s reasonable belief of arson. If the insurer has a “reasonable basis to believe” the loss was the result of arson, the deadline to notify of acceptance, rejection, or inability to decide is thirty days (which includes Saturdays, Sundays, and holidays) rather than fifteen business days (which excludes Saturdays, Sundays, and state holidays). Tex. Ins. Code §542.056(b). If the insurer is relying on the arson exception, the jury should be asked whether the insurer had a “reasonable basis to believe” the loss was the result of arson and whether the notice to the claimant was within thirty days of the insurer’s receipt of all the requested information. Extension of deadlines by court or insurance commissioner. A court may extend the statutory deadlines for a guaranty association showing good cause and after reasonable notice to policyholders. Tex. Ins. Code § 542.059(a). The commissioner of insurance may extend the statutory deadlines by fifteen days upon determining that there is a weather-related catastrophe or major natural disaster. Tex. Ins. Code § 542.059(b).

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