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TDI adopts amendments to 28 TAC §5.7015 to ensure that companies refund unearned premiums when a personal automobile or residential property policy is canceled. Companies must also calculate unearned premiums on a pro rata basis.
The changes prohibit insurers from keeping unearned premiums through "short rate" provisions. The rule does not prevent insurers from keeping an earned amount for unrecoverable expenses incurred in issuing a policy.
View the adoption order for the full text. For other related dates and documents, visit TDI’s Proposed and Adopted Rules for 2025.
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