By: Carona  S.B. No. 382
         (In the Senate - Filed January 31, 2007; February 21, 2007,
  read first time and referred to Committee on State Affairs;
  April 4, 2007, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 6, Nays 0; April 4, 2007,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 382 By:  Carona
 
 
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 originally scheduled expiration [maturity] date of the
  insurance [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)  the obligation of the insurer to refund any
  unearned premium requires a notice:
                     (A)  to be sent to the insurer, by the person who
  is the holder of the underlying debt instrument as of the date on
  which the debt terminates, within 90 days after the original
  expiration date of the insurance; and
                     (B)  that includes the name of the insured and the
  policy number.
         (a-1)  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 required to be sent to the insurer under Subsection (a)(2).
         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.
 
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