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