83R7230 MEW-F
By: Eiland, Sheets H.B. No. 1902
A BILL TO BE ENTITLED
AN ACT
relating to the refund of unearned premium for a personal
automobile or residential property insurance policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 558.002, Insurance Code, is amended by
adding Subsections (d) and (e) to read as follows:
(d) An insurer shall refund the appropriate portion of any
unearned premium to the policyholder not later than the 15th
business day after the effective date of cancellation or
termination of a policy of personal automobile or residential
property insurance, as those terms are defined by Section 2301.051.
(e) For purposes of this section, "business day" means a day
other than a Saturday, Sunday, or holiday recognized by this state.
SECTION 2. Section 558.002, Insurance Code, as amended by
this Act, applies only to an insurance policy delivered, issued for
delivery, or renewed on or after September 1, 2013. A policy that is
delivered, issued for delivery, or renewed before September 1,
2013, 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 immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.