State Farm Faces Penalty Over Failure to Pay Claim Before Deadline

State Farm Insurance Co. will have to pay penalties to a customer who didn’t receive his personal injury protection claim payment from the insurer within the 30-day deadline set by Texas law, a state court of appeals said on Tuesday.

If a insurer fails to pay the benefits from a client’s PIP claim payment “when due,” then the insurer has to pay statutory penalties calculated starting from when the benefits were paid past the deadline, the Texas Court of Appeals, Sixth District said.

Greg Rumbaugh submitted a claim on March 2, 2018, for his policy’s $2,500 personal injury protection benefits ...