The Texas Department of Insurance published a bulletin providing information on a newly adopted amendment. The amendment specifies under which circumstances a premium refund is due to Texas Windstorm Insurance Association (TWIA) policyholders.

If an insured requests cancellation of a TWIA policy, the association will refund the unearned premium only for one of the following reasons:

  • The insured purchased similar coverage in the voluntary market
  • The insured property was sold to an unrelated party
  • Total loss of the insured property
  • The association determined that the insured property is no longer insurable under their rules and procedures
The insured must provide proof to be eligible for a refund. If the insured requests cancellation of the policy for any other reason or fails to provide proof, the premium is considered earned and will not be refunded. Any agent who received a commission from the issuance of the policy must also refund the commission on the unearned portion of the premium.

The adoption order can be found here.

Ray Sugrim

Ray Sugrim

Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.

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