Tex.
Ins. Code Section 558.002
Applicability of Chapter; Refund of Unearned Premium
(a)
This chapter applies to an insurer that issues an insurance policy that requires the insurer to maintain an unearned premium reserve for the portion of the written policy premium applicable to the unexpired or unused part of the policy period for which the premium has been paid.(b)
An insurer shall promptly refund the appropriate portion of any unearned premium to the policyholder if the policy:(1)
has a remaining unearned premium reserve; and(2)
is canceled or terminated by the insured or the insurer before the end of its term.(c)
A guaranty association shall promptly refund any unearned premium as described by Subchapter E (Covered Claims in General), Chapter 462 (Texas Property and Casualty Insurance Guaranty Association), or Sections 463.003 (General Definitions)(9) and 463.259 (Premium Due During Receivership).(d)
An insurer shall refund the appropriate portion of any unearned premium to the policyholder not later than the 15th business day after the effective date of cancellation or termination of a policy of personal automobile or residential property insurance, as those terms are defined by Section 2301.051 (Definitions).(e)
Notwithstanding Subsection (d), a guaranty association shall refund any unearned premium as described by Subchapter E (Covered Claims in General), Chapter 462 (Texas Property and Casualty Insurance Guaranty Association), not later than the 30th business day after the date the guaranty association receives any necessary and accurate financial information, including supporting accounting information, required to determine unearned premium under a policy of personal automobile or residential property insurance, as those terms are defined by Section 2301.051 (Definitions).(f)
For purposes of this section, “business day” means a day other than a Saturday, Sunday, or holiday recognized by this state.
Source:
Section 558.002 — Applicability of Chapter; Refund of Unearned Premium, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.558.htm#558.002 (accessed Apr. 29, 2024).
