By Junell H.B. No. 1408 77R4864 AJA-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the refund of unearned premiums by an insurer. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is 1-5 amended by adding Article 21.29 to read as follows: 1-6 Art. 21.29. REFUND OF UNEARNED PREMIUM REQUIRED. (a) In 1-7 this article, "insurer" means an insurance company or other entity 1-8 that is authorized to engage in the business of insurance in this 1-9 state, including: 1-10 (1) a domestic or foreign, stock or mutual, life, 1-11 health, or accident insurance company; 1-12 (2) a domestic or foreign, stock or mutual, fire and 1-13 casualty insurance company; 1-14 (3) a Mexican casualty company; 1-15 (4) a farm mutual insurance company; 1-16 (5) a county mutual insurance company; 1-17 (6) a domestic or foreign Lloyd's plan insurer; 1-18 (7) a domestic or foreign reciprocal or insurance 1-19 exchange; 1-20 (8) a domestic or foreign fraternal benefit society; 1-21 (9) a stipulated premium insurance company; 1-22 (10) a nonprofit legal service corporation; 1-23 (11) a statewide mutual assessment company; 1-24 (12) a local mutual aid association; 2-1 (13) a local mutual burial association; 2-2 (14) an association exempt under Article 14.17 of this 2-3 code; 2-4 (15) a nonprofit hospital, medical, or dental service 2-5 corporation, including a company subject to Chapter 20 of this 2-6 code; 2-7 (16) a risk retention group; 2-8 (17) a purchase group; 2-9 (18) a surplus lines carrier; and 2-10 (19) a guaranty association created and operating 2-11 under Article 21.28-C or 21.28-D of this code. 2-12 (b) An insurer shall promptly refund to an insurance 2-13 policyholder or contract holder any unearned premium for the policy 2-14 or contract. 2-15 (c) The commissioner shall adopt rules necessary to 2-16 implement this article. 2-17 SECTION 2. (a) This Act takes effect September 1, 2001. 2-18 (b) The change in law made by Article 21.29, Insurance Code, 2-19 as added by this Act, applies only to an insurance premium paid to 2-20 an insurer on or after January 1, 2002. An insurance premium paid 2-21 before January 1, 2002, is governed by the law in effect 2-22 immediately before the effective date of this Act, and that law is 2-23 continued in effect for that purpose.