Common use of Liability for Violation Clause in Contracts

Liability for Violation. If the company is liable for a claim under an insurance policy and is not in compliance with the Prompt Payment of Claims requirements of the Texas Insurance Code, the company is liable to pay the holder of the policy or the beneficiary making the claim under the policy, in addition to the amount of the claim, interest on the amount of the claim at the rate of 18 percent a year as damages, together with reasonable attorney's fees.

Liability for Violation. If the company is liable for a claim under an insurance policy and is not in compliance with the Prompt Payment of Claims requirements of the Texas Insurance Code, the company is liable to pay the holder of the policy or the beneficiary making the claim under the policy, in addition to the amount of the claim, interest on the amount of the claim at the rate of 18 percent a year as damages, together with reasonable attorney's fees.