S.B. No. 382
 
 
 
 
AN ACT
  relating to certain refund requirements regarding credit
  insurance.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1153.202, Insurance Code, is amended by
  amending Subsection (a) and adding Subsections (a-1) and (a-2) to
  read as follows:
         (a)  Each individual policy or group policy and group
  certificate must include a written notice stating [shall provide]
  that:
               (1)  if the underlying debt or the insurance terminates
  before the originally scheduled termination [maturity] date of the
  insurance [debt], including the termination of a debt by renewing
  or refinancing the debt, the debtor shall be entitled to a refund of
  unearned premium; and
               (2)  in the event that the underlying debt or the
  insurance terminates before the originally scheduled termination
  date of the insurance, including the termination of a debt by
  renewing or refinancing the debt, the person who is the holder of
  the underlying debt instrument on the date the debt terminates
  shall, no later than 60 days after the termination of the insurance,
  provide notice to the insurer of the termination of the debt, that
  includes the name and address of the insured and the payoff date of
  the underlying debt.
         (a-1)  The refund of any amount of unearned premium paid by
  or charged to the debtor for insurance shall be paid or credited
  promptly to the person entitled to the refund no later than 30 days
  after receipt of the notice required to be sent to the insurer under
  Subsection (a)(2).
         (a-2)  In any claim or action asserted by an insured against
  an insurer for failure to refund any unearned premium in accordance
  with this section, the insurer shall be entitled to indemnity from a
  holder who failed to provide the notice required under Subsection
  (a)(2).
         SECTION 2.  This Act applies only to a credit life or credit
  accident and health insurance policy evidenced by an individual
  policy or group certificate of insurance that is delivered, issued
  for delivery, or renewed on or after January 1, 2008. A policy or
  certificate delivered, issued for delivery, or renewed before
  January 1, 2008, 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 September 1, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 382 passed the Senate on
  April 12, 2007, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 21, 2007, by the
  following vote: Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 382 passed the House, with
  amendment, on May 15, 2007, by the following vote: Yeas 139,
  Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor