S.B. No. 698
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), (e), and (f) 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) Notwithstanding Subsection (d), a guaranty association
shall refund any unearned premium as described by Subchapter E,
Chapter 462, not later than the 30th business day after the date the
guaranty association receives any necessary and accurate financial
information, including supporting accounting information, required
to determine unearned premium under a policy of personal automobile
or residential property insurance, as those terms are defined by
Section 2301.051.
(f) 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 698 passed the Senate on
March 21, 2013, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 8, 2013, by the
following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 698 passed the House, with
amendment, on April 25, 2013, by the following vote: Yeas 137,
Nays 0, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor