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STATE FARM LIFE INS. CO. v. MARTINEZ

No. 05-0812.

216 S.W.3d 799 (2007)

STATE FARM LIFE INSURANCE COMPANY, Petitioner, v. Toni Wasson MARTINEZ, Respondent.

Supreme Court of Texas.

Delivered February 9, 2007.

Rehearing Denied April 13, 2007.

Attorney(s) appearing for the Case

J. Hampton Skelton, Eva C. Ramos, Stephanie Elizabeth Clark, Skelton & Woody, Austin, Allen A. King Jr., David Black & Associates, Houston, Raul A. Gonzalez, Law Offices of Raul A. Gonzalez, Austin, Chris J. Kling, Dallas, Stuart Smith, Greg White, Naman, Howell, Smith & Lee LLP, Waco, for Petitioner.

Bill M. Payne, Payne, Watson, Miller, Malechek & Scherr, P.C., Bryan, for Respondent.

Larry A. Catlin, Bryan, R. Hal Moorman, Moorman, Tate, Moorman, Urquhart & Haley, L.L.P., Brenham, for Other.

Douglas W. Alexander, Alexander Dubose Jones & Townsend LLP, Austin, for Amicus Curiae.

Justice BRISTER delivered the opinion of the Court.

It has long been the rule in Texas that if an insurer promptly interpleads policy proceeds, it cannot be subjected to statutory penalties for delayed payment even if it missed the statutory deadlines. The Legislature's 1991 changes to the Insurance Code suggest the courts should not continue imposing a different deadline. But nothing in those changes suggests that statutory penalties should apply after interpleader...

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