In this brief UP endeavors to change the use of Texas’ longstanding reasonableness exception to bar insured’s Texas Prompt Payment of Claims Act (TPPCA) entitlements.  This reasonableness exception provides insurers with a loophole opportunity to low-ball the insured, take a gamble on a policyholder paying for appraisal out of their own pocket, and pay the difference if they lose the appraisal without any further pecuniary consequence.

UP argues that:

1.      TPPCA has no basis under Texas law;

2.     The “reasonableness exception is problematic and continues to be in federal district court decisions”; and

3.     The continued application of the reasonableness exception is not viable.