28 Tex. Admin. Code § 25.10 - Premium Refunds
(a) If the insurance
premium finance company notified the insurer of the existence of the premium
finance agreement pursuant to the Insurance Code, Article 24.22, then the
entire unearned premium owed the insurance premium finance company (in trust
for the insured) shall be paid within 60 days from the date notice of
cancellation was received. If an audit of the insured's records is required to
determine the amount of premiums, the time shall be extended to 90 days. If the
audit is delayed because of acts of the insured, the 90-day period shall be
extended to provide a reasonable time to conduct the audit and determine the
amount of premiums earned.
(b) If
the insurance premium finance company does not give notice of the premium
finance agreement to the insurer (as provided by the Insurance Code, Article
24.22), then the total unearned premium refund shall be paid directly to the
insurance premium finance company within 120 days from the effective date of
the cancellation, unless the insurer has already refunded the unearned premium
to the insured due to cancellation.
(c) The insurance premium finance company
shall return any monies due to the insured within 20 days from the date
returned unearned premiums are received from the insurer or agent.
(d) This section shall apply to cancelled
policies written through or in a statutory plan or pool, except that the agent
who applied for the statutory plan or pool policy on behalf of the insured
shall be solely responsible for the payment of any unearned commission owed to
the insurance premium finance company unless the insuring company tenders the
entire unearned premium including unearned commission.
Notes
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