Texas Statute of Limitations for Unfair Claims Settlement Practices Under the Texas Insurance Code

Is there a time limit within which one must file claims under the Texas Insurance Code for unfair claims settlement practices?

Yes.  Under the Texas Insurance Code, a person must bring an action within two years of (1) the date the unfair or deceptive act or practice occurred; or (2) the date the person discovered or, by the exercise of reasonable diligence, should have discovered that the unfair or deceptive act or practice occurred.  Tex. Ins. Code. § 541.162(a)(1-2).  This two year limitations period may be extended for 180 days if the plaintiff proves that the failure to bring the action within the two year period was caused by  the defendant’s attempt to induce the plaintiff to refrain or postpone bringing the action.  Tex. Ins. Code. § 541.162(b).

A cause of action under the Insurance Code for unfair claims based on denial of insurance coverage accrues on the date that the insurer denies coverage.  See Celtic Life Ins. Co. v. Coats, 885 S.W.2d 96, 100 (Tex. 1994).