2021 Texas Statutes
Insurance Code
Title 12 - Other Coverage
Chapter 3503 - Surety Bonds and Related Instruments
Subchapter B. Prompt Payment of Construction Payment Bonds
Section 3503.054. Notice of Claim; Acknowledgment and Investigation
Sec. 3503.054. NOTICE OF CLAIM; ACKNOWLEDGMENT AND INVESTIGATION. (a) A surety company that issues a construction payment bond shall, not later than the 15th day after the date of receipt of notice of claim under the bond:
(1) acknowledge receipt of the claim;
(2) begin any review or investigation necessary to determine whether the surety company is obligated to satisfy the claim under the bond; and
(3) request from the claimant each document, item of information, accounting, statement, or form that the surety company reasonably believes, at that time, will be required from the claimant.
(b) If a construction payment bond provides an address to which a notice of claim under the bond should be submitted, the notice is effective on the date the notice is received at that address.
(c) This subchapter does not exempt a claimant from complying with any applicable statutory or contractual notice requirement.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 3, eff. April 1, 2007.
