Can I sue my insurance company for taking too long on a claim?

Texas has a written penalty for taking too long. The clock runs once the insurer has everything it asked for. That means all items, statements and forms it reasonably requested [1]. Does another statute set a period for that kind of claim? Then that period counts [1]. If none does, the limit is 60 days [1]. Past that, the insurer must pay damages under Section 542.060 [1]. Those damages are interest on the amount of the claim at 18 percent a year, plus reasonable and necessary attorney fees [2].

Two parts matter here. First, the clock runs from the day the company has everything it asked for. It does not run from the day you filed [1]. Second, the remedy named in the statute includes attorney fees [2]. Note also that Section 542.060 has other parts these sources do not quote. So read the section itself before you lean on the 18 percent figure.

Whether to sue is your call, and this answer does not judge your claim. A cheaper first step is a written demand with your dates. A complaint to the state insurance department is another step. These sources do not describe that process. Also check whether this part of the law covers your plan at all. It does not apply to a health maintenance organization, except as one other section allows [3]. And it does not apply to a claim governed by Subchapter C, Chapter 1301 [3]. These are the Texas rules. Other states have their own numbers.

Open Texas Insurance Code Chapter 542. Read Section 542.058 and Section 542.060. Then read Section 542.053, which names the plans the chapter leaves out. Then look up your own state's insurance department. Search for "prompt payment" and "bad faith" to see what that state gives you.