Detailed Answer — What to expect in Texas

After you send a written demand to an insurer in Texas, the process and timeline for receiving an initial offer can vary widely. Below is a practical, step‑by‑step overview of common timelines, how Texas law applies, and what factors change the timeline.

Typical timeline (general expectations)

• Immediate to 1–2 weeks: Acknowledgment of receipt. Many insurers send a confirmation that they received the demand and open a claim file. If you do not receive acknowledgement, follow up promptly.
• 2–6 weeks: Initial investigation. The insurer gathers medical records, repair estimates, police reports, witness statements, and any policy-related documents. If needed, they may request authorizations to obtain records.
• 4–8 weeks: Review and valuation. The insurer’s adjuster and/or attorney will analyze liability and damages. For straightforward claims with clear liability and documented damages, an initial offer may appear during this window.
• 6–12+ weeks: Complex or disputed claims. If liability or damages are contested, or if the insurer needs independent medical exams (IMEs) or engineering reports, initial offers may be delayed for many weeks or months.
• If no reasonable offer: You may receive a denial, a low offer, or no response. At that point you can negotiate further, threaten suit, or file a complaint with the Texas Department of Insurance (TDI) or consider litigation.

How Texas law affects timing

Texas law includes provisions that regulate how insurers handle claims, but the rules differ by claim type:

• For many first‑party property and casualty claims, Texas Insurance Code Chapter 542 addresses prompt payment of claims and investigation duties. Chapter 542 requires insurers to promptly investigate and to pay or deny claims in a timely manner once they have received all items, statements, and forms reasonably requested. See the statutory chapter for details: Tex. Ins. Code Ch. 542 (Prompt Payment of Claims).
• For third‑party liability claims (for example, personal injury claims against an insured), there is no single statutory deadline that forces an insurer to make an initial settlement offer within a fixed number of days after a demand. However, insurers still must avoid unfair settlement practices. See Tex. Ins. Code Ch. 541 (Unfair Methods, Unfair or Deceptive Acts or Practices).
• If an insurer fails to comply with prompt payment rules where they apply, Chapter 542 and related sections can create penalties, interest, and potential entitlement to attorney’s fees—but those remedies apply under specific circumstances and are fact‑dependent. See the chapter link above for statutory language.

Factors that lengthen or shorten the timeline

• Quality of your demand package (clear narrative, supporting medical records, bills, repair estimates, photos, and a reasonable valuation shorten the timeline).
• Liability clarity — clear fault speeds review; disputed fault slows it.
• Severity and complexity of injuries or damages (catastrophic injuries or complex property damage require more review).
• Need for independent exams, expert reports, or depositions.
• Insurance company workload, staffing, and whether the claim is within the insurer’s retention vs. a reinsurance/umbrella threshold.
• Whether the claim is first‑party (your own insurer) or third‑party (insurer for an at‑fault party). First‑party claims often follow prompt‑payment rules; third‑party claims often involve more negotiation.

What an “initial offer” can look like

An initial offer may be:

• A full settlement offer that matches or exceeds your demand (less common on first offer).
• A partial offer that resolves some claims or pays specific bills.
• A lowball offer intended to open negotiations.
• A denial or a request for more information.

Practical example (hypothetical)

Hypothetical facts: You send a demand for $50,000 after a rear‑end crash. You include medical records for six weeks of treatment, CT reports, and bills totaling $18,000.

• Week 1: Insurer acknowledges receipt and asks for authorizations.
• Weeks 2–4: Insurer gathers medical records and may order an IME.
• Weeks 4–6: Adjuster reviews liability and damages. If liability seems clear and records support significant damages, an initial offer (e.g., $20,000–$30,000) could arrive.
• Beyond Week 6: If IME disputes causation or severity, the insurer may delay or deny. Negotiations or litigation threat may follow.

When delays can lead to statutory remedies

If your claim is a first‑party claim governed by Chapter 542 and the insurer unreasonably delays payment after receiving all required documentation, Texas law provides remedies in certain cases. Read Chapter 542 for the full statutory framework: Tex. Ins. Code Ch. 542.

What you should do while waiting

• Document all communications in writing. Keep copies of demands, medical records, bills, and correspondence.
• Respond quickly to insurer requests for records or authorizations.
• Keep medical care current and preserve evidence (photos, repair estimates, witness info).
• If you receive a low offer, respond with a reasoned counter‑demand and explain why the offer is insufficient.
• If you receive no response or an unfair delay, consider contacting the Texas Department of Insurance (TDI) for guidance or filing a complaint. TDI consumer information: Texas Department of Insurance — Consumer Help.

When to involve an attorney

Consider consulting an attorney if any of the following occur:

• The insurer denies coverage or denies responsibility for your injury/damage without clear basis.
• The insurer unreasonably delays payment despite producing requested documents.
• You receive a lowball offer that does not fairly compensate for documented damages.
• The case involves severe injuries, permanent impairment, complex liability, or significant uninsured/underinsured issues.

An attorney can organize records, file suit when appropriate, and—when statutory remedies apply—seek penalties or attorney’s fees under Texas law.

Key Texas law links

• Tex. Ins. Code Ch. 542 — Prompt Payment of Claims
• Tex. Ins. Code Ch. 541 — Unfair or Deceptive Acts or Practices
• Texas Department of Insurance — Consumer Help

Helpful Hints

• Send a clear, organized demand letter with copies of key records and a concise valuation.
• Ask the insurer to confirm receipt and provide a claim number within 5 business days.
• Track all deadlines and follow up regularly—politely and in writing—every 1–2 weeks after submission.
• If the insurer requests an IME, schedule it promptly; delays in cooperation give the insurer less excuse to delay an offer.
• Preserve evidence: photos, repair receipts, medical appointments, and witness contact info.
• Consider a demand that leaves room to negotiate—an initial number that reflects the full damages but is not so high that it stalls negotiations.
• If you believe the insurer is acting in bad faith, document the conduct and talk to an attorney about potential statutory remedies under Chapters 541 and 542.

Disclaimer: This article explains general Texas law and common practices. It is educational information, not legal advice. For advice about your specific situation, consult a licensed Texas attorney.