When a claim is denied in Texas, what must the insurer provide to the policyholder?

• A. Notice of denial with reasons for the denial
• B. Only a payment stub
• C. None, denial is final
• D. A new premium quote

Answer: (A)

In Texas, when a claim is denied, the insurer must give the policyholder a written notice that explains the denial and states the specific policy provisions and facts that support it. This explanation helps the insured understand exactly why coverage isn’t paid and what to do next, such as reviewing or appealing the decision or seeking guidance from the Texas Department of Insurance. A denial isn’t just a blank decision; it must be accompanied by the reasons tied to the policy language. Sending only a payment stub or a new premium quote doesn’t address the claim decision, and denial isn’t concluded without this clear, documented rationale.