(a) If a lender fails to provide notice as required by § 557.002 or 557.003, interest begins to accrue on the date the lender received the insurance proceeds.
(b) If a lender fails to release insurance proceeds as required by § 557.003, interest begins to accrue on the date the lender receives sufficient evidence of the insured’s compliance with the requirements specified by the lender under § 557.002 or 557.003 for release of the proceeds.

Ask an insurance law question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Texas Insurance Code 557.005

  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.

(c) Interest stops accruing on the date the lender complies with § 557.002 or 557.003, as applicable.