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TX Bulletin B-0007-20

On March 20, 2020, Texas Governor, Greg Abbott, suspended certain claim-handling deadlines imposed by law. On March 23, 2020, Texas Commissioner of Insurance, Kent Sullivan, issued Bulletin B-0007-20, which declared the COVID-19 pandemic a disaster.

Together, the Governor’s suspension and the Commissioner’s declaration have the following impact on claim handling deadlines and premium payments:

Claim handling

Claim handling deadlines imposed by the state’s prompt payment laws are extended for an additional 15 days to help carriers respond to the COVID-19 outbreak. This extension will be in effect until the Governor’s suspension and Commissioner’s declaration are lifted. 

Carriers must continue to:

  • Promptly identify, evaluate, and resolve claims.
  • Promptly acknowledge receipt of a claim.
  • Promptly make appropriate assignments for the investigation of a claim.

Consumers and providers should continue to get timely service and receive prompt claims payments. 

Premium payments grace period

  • TDI expects all carriers to work with policyholders who may experience financial hardships due to the COVID-19 outbreak.
  • Automatic bank drafts for premium payments may continue according to a carrier’s written agreement with a policyholder, unless a policyholder notifies a carrier of a specific hardship.
  • It is TDI’s expectation that carriers will work directly with policyholders to resolve issues and minimize the effects of any penalties or additional charges. 

Read Bulletin B-007-20 in its entirety here.