Section 1952.157 - Action for Failure to Pay Benefits(a) If the insurer fails to pay benefits under the coverage required by this subchapter when due, the person entitled to those benefits may bring an action in contract to recover the benefits.(b) If the insurer is required to pay benefits described by Subsection (a), the person entitled to the benefits is entitled to recover reasonable attorney's fees, a penalty of 12 percent, and interest at the legal rate from the date those amounts became overdue.Tex. Ins. Code § 1952.157
Added by Acts 2005, 79th Leg., Ch. 727, Sec. 2, eff. 4/1/2007.