| (a) An insurance premium finance company may cancel an insurance policy pursuant to a power of attorney. However, it must notify the insurer in advance or at the time of financing that an insurance premium is being financed and that the insurance premium finance company has a power of attorney in accordance with the Insurance Code, Article 24.22. The cancellation notice shall advise the insurer that it has 60 days from the policy cancellation date to return the gross unearned premium. (b) Each premium financing check delivered to an insurance company shall contain with it a statement officially notifying the insurance company that the insurance policy has been financed and that the financier holds a power of attorney enabling it to recover monies in case of default by the insured. This document shall accompany the insurance application and premium finance company check as part of the total insurance application. These requirements shall also apply to
the financing of insurance policies written through the Texas Workers' Compensation Insurance Fund and the Texas Medical Liability Insurance Underwriting Association.
|
