| (a) Insurers must 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 personal
automobile or residential property insurance policy, as required by
Insurance Code §558.002(d).
(b) For purposes of this section and Insurance Code §558.002(d),
the "effective date of cancellation or termination" means the date
the insurer receives notice of the cancellation or termination, or
the date of the cancellation or termination, whichever is later. This
does not change the actual date of cancellation or termination for
calculating the amount of unearned premium or any other purpose.
(c) Insurers may refund unearned premium by applying
it as a credit to other premium due on the same policy, unless the
policyholder requests otherwise.
(d) This section applies to any unearned premium, including
any that results from cancellation or termination of an entire policy
or an endorsement.
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