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TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 25INSURANCE PREMIUM FINANCE
SUBCHAPTER COPERATIONS
RULE §25.57Cancellation of Policy Through Power of Attorney

When a premium finance agreement utilizes a power of attorney to effect the cancellation of a financed policy, the insurance premium finance company may require the insured to pay to it any unpaid amount on the account not covered by the gross unearned premium returned by the insurer. This is allowed only if the insurance premium finance company has not delayed in closing out the loan for the purpose of creating additional indebtedness.


Source Note: The provisions of this §25.57 adopted to be effective May 17, 1995, 20 TexReg 3337.

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