A Texas letter of representation is a written notice from an attorney to an insurance company or opposing party stating that the attorney now represents a specific claimant on a specific matter. Once the insurer receives it, all communication about the claim must be routed through the attorney’s office, and the statutory clocks in the Texas Prompt Payment of Claims Act start running. Ignore the letter, and the insurer can end up owing the claim amount plus 18 percent annual interest and attorney’s fees.
What the Letter Does
The letter has three practical jobs. It tells the insurer who the lawyer is and where to send everything from now on. It qualifies as a notice of claim under Section 542.051 of the Texas Insurance Code, which defines that notice as any written notification reasonably informing the insurer of the facts of a loss.1State of Texas. Texas Code INS 542.051 – Definitions And it invokes the no-contact rule that shields the client from direct calls by the adjuster.
None of that requires a state-issued form for ordinary liability or first-party claims. Workers’ compensation is the exception, and that form is covered further down.
What a Properly Drafted Letter Contains
A missing claim number or wrong date of loss can stall the letter for weeks in a large carrier’s intake department, so the details are not optional. A complete letter includes:
- The client’s full legal name, date of birth, and contact information.
- The exact date of loss, which the insurer uses to match the letter to its internal file.
- The claim or policy number, if one has already been assigned.
- The attorney’s name, bar number, firm name, office address, phone, fax, and email.
- A clear statement that the attorney represents the client and that future communication about the matter must go through the attorney’s office.
- A request for the applicable policy limits and coverage details.
- A spoliation notice directing the insurer and any other parties to preserve physical evidence, photographs, video, and electronic records tied to the incident.
The 15-Day Acknowledgment Deadline
Once the insurer receives the letter, Section 542.055 gives it 15 days to do three specific things: acknowledge receipt of the claim, begin investigating, and request any items, statements, or forms it reasonably believes it needs from the claimant.2State of Texas. Texas Insurance Code Section 542.055 – Receipt of Notice of Claim The statute says “the 15th day,” meaning calendar days, not business days. Eligible surplus lines insurers get 30 business days; most standard carriers must hit 15 calendar days.
What typically comes back is an acknowledgment letter identifying the adjuster assigned to the file. If nothing arrives within the window, the silence itself may become evidence of a Prompt Payment Act violation.
The Accept-or-Reject Deadline
After the insurer has all the information it requested, a second clock starts under Section 542.056. The carrier then has 15 business days to accept or reject the claim. It can take one, and only one, 45-day extension, and only by explaining in writing why more time is needed. A decision has to come within that extended window.
Penalties for Missing the Deadlines
Section 542.060 gives the letter of representation its real leverage. An insurer that violates the Prompt Payment of Claims Act owes the policyholder or beneficiary the full claim amount plus interest at 18 percent per year as damages, along with reasonable and necessary attorney’s fees.3State of Texas. Texas Insurance Code Section 542.060 – Liability for Violation of Subchapter In a lawsuit, those fees get taxed as part of the court costs.
Property insurance claims under Chapter 542A follow a different math. The penalty rate there is not a flat 18 percent; it is five percentage points added to the statutory prejudgment interest rate set under Section 304.003 of the Texas Finance Code.3State of Texas. Texas Insurance Code Section 542.060 – Liability for Violation of Subchapter
Either way, an insurer that ignores the letter is accruing liability from the day it lands.
The No-Contact Rule Kicks In Immediately
Once the letter is on file, direct communication between the adjuster and the client stops. Two separate rules produce that result depending on the kind of claim.
Texas Disciplinary Rule 4.02
Under Texas Disciplinary Rule of Professional Conduct 4.02, a lawyer cannot communicate about the subject of the representation with a person the lawyer knows is represented by another lawyer, unless the other lawyer consents or the law authorizes the contact.4Texas Center for Legal Ethics. Rule 4.02 – Communication With One Represented by Counsel The rule reaches opposing counsel and, in practice, the adjusters acting at their direction once the representation is known.
Federal Debt Collection Protections
When the matter involves debt collection instead of an insurance payout, 15 U.S.C. ยง 1692c bars a debt collector who knows a consumer is represented by an attorney regarding a particular debt from contacting the consumer directly. The exceptions are narrow: the attorney fails to respond within a reasonable time, the consumer personally consents, or a court permits it.5Office of the Law Revision Counsel. 15 USC 1692c – Communication in Connection With Debt Collection
If an adjuster or collector calls after the letter has gone out, decline to discuss the matter and point them to the attorney. Anything said in an unguarded call can be used later to undercut the claim.
Delivering the Letter
Because every deadline runs from the date the insurer actually receives the notice, the delivery method is part of the record. Certified mail with return receipt requested is the standard. The signed green card proves exactly when the insurer got the letter, which becomes the anchor if the carrier later claims it never received notice.
Fax with a transmission confirmation and email with read receipts are useful backups, and some firms send the letter through multiple channels at once to foreclose any dispute about timing. Certified mail remains the version a court will not second-guess.
What the Letter Does Not Do
It Does Not Force Disclosure of Policy Limits
Nearly every letter asks the at-fault carrier to disclose policy limits, and knowing whether you are up against minimum coverage or a high-limit commercial policy shapes the whole negotiation. Texas minimum auto liability limits have historically been $30,000 per person and $60,000 per accident for bodily injury, with $25,000 for property damage.6State of Texas. Texas Code TRANSP 601.072 – Minimum Coverage Amounts Exclusions
Texas does not, however, require insurers to hand over policy limits just because a letter asked. There is no pre-suit statutory obligation to disclose. The mechanism that compels disclosure is Texas Rule of Civil Procedure 194, and it only becomes available once a lawsuit has been filed. Many carriers do disclose voluntarily during pre-suit negotiations because it speeds up settlement, but nothing in the code forces them to.
It Does Not Pause the Statute of Limitations
This is where people get hurt. The deadline to file a personal injury lawsuit in Texas is two years from the date the cause of action accrues, which is usually the date of the accident.7State of Texas. Texas Civil Practice and Remedies Code Section 16.003 – Two-Year Limitations Period Sending a letter of representation does nothing to that clock.
If the letter goes out in month one and the insurer negotiates for 22 months without resolving anything, a lawsuit still has to be on file before the two-year mark or the right to sue is gone. The letter puts the carrier on notice and triggers the Prompt Payment Act deadlines. It does not extend limitations by a day.
Workers’ Compensation Uses a Different Form
Workers’ compensation representation follows separate rules administered by the Texas Department of Insurance, Division of Workers’ Compensation. Instead of a drafted letter, the attorney files DWC Form-150, which identifies the attorney, the claimant, and the injured employee if that is a different person.8Texas Department of Insurance. Notice of Representation DWC Form-150
The form is filed directly with the Division of Workers’ Compensation by mail, fax, or in person at a field office, and a copy goes to opposing counsel. Sending only a general letter to the carrier will not accomplish what the form does.