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A BILL TO BE ENTITLED
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AN ACT
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relating to certain refund requirements regarding credit |
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insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1153.202, Insurance Code, is amended by |
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amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) Each individual policy or group policy and group |
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certificate must include a written notice stating [shall provide] |
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that: |
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(1) if the underlying debt or the insurance terminates |
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before the scheduled maturity date of the debt, including the |
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termination of a debt by renewing or refinancing the debt, the |
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debtor may be entitled to a refund of unearned premium; and |
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(2) it is the obligation of the debtor to notify the |
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insurer of any early payment in full of the debt covered by the |
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insurance. |
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(a-1) To be entitled to a refund of unearned premium, the |
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debtor must notify the insurer of any early payment in full of the |
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debt covered by the insurance not later than the 60th day after the |
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effective date of the payment. The refund of any amount of unearned |
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premium paid by or charged to the debtor for insurance shall be paid |
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or credited promptly to the person entitled to the refund on receipt |
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of the notice. |
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SECTION 2. This Act applies only to a credit life or credit |
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accident and health insurance policy evidenced by an individual |
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policy or group certificate of insurance that is delivered, issued |
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for delivery, or renewed on or after January 1, 2008. A policy or |
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certificate delivered, issued for delivery, or renewed before |
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January 1, 2008, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |