Law:Title 5. Protection Of Consumer Interests. Subtitle C. Deceptive, Unfair, And Prohibited Practices from Chapter 558. Refund Of Unearned Premium (Texas)

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Subtitle C. Deceptive, Unfair, And Prohibited Practices

Contents

Chapter 558. Refund Of Unearned Premium

Section 558.001.  Definition.

In this chapter, "insurer" means an insurance company or other entity authorized to engage in the business of insurance in this state.  The term includes:

(1)  a stock life, health, or accident insurance company;

(2)  a mutual life, health, or accident insurance company;

(3)  a stock fire or casualty insurance company;

(4)  a mutual fire or casualty insurance company;

(5)  a Mexican casualty insurance company;

(6)  a farm mutual insurance company;

(7)  a county mutual insurance company;

(8)  a Lloyd's plan;

(9)  a reciprocal or insurance exchange;

(10)  a fraternal benefit society;

(11)  a stipulated premium company;

(12)  a nonprofit legal services corporation;

(13)  a statewide mutual assessment company;

(14)  a local mutual aid association;

(15)  a local mutual burial association;

(16)  an association exempt under Section 887.102;

(17)  a nonprofit hospital, medical, or dental service corporation, including a corporation subject to Chapter 842;

(18)  a risk retention group;

(19)  a purchasing group;

(20)  an eligible surplus lines insurer; and

(21)  a guaranty association operating under Chapter 462 or 463.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 730, Sec. 2D.015, eff. April 1, 2009.



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, Chapter 462, or Sections 463.003(9) and 463.259.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch. 730, Sec. 2D.016, eff. April 1, 2009.



Section  558.003.  Rules And Guidelines.

The commissioner shall:

(1)  adopt rules necessary to implement this chapter; and

(2)  establish appropriate guidelines to determine the portion of an unearned premium that must be refunded to a policyholder under this chapter.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.



Section  558.004.  Effect On Insurance Premium Finance Company. Thi

s chapter does not affect the obligation of an insurer to pay an unearned premium to an insurance premium finance company in accordance with Section 651.162.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.


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