Texas Insurance Code

§ 549.003 — CANCELLATION OF POLICY AFTER FORECLOSURE AUTHORIZED

IN § 549.003Title 5. PROTECTION OF CONSUMER INTERESTS · Part C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES · Ch. 549. PROHIBITED PRACTICES RELATING TO PROPERTY INSURANCE · Art. A. GENERAL PROVISIONS

Statute text

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In the event of a foreclosure under a deed of trust, the lender may cancel an insurance policy covering the foreclosed property and is entitled to any unearned premiums from the policy if the lender:

(1)credits the amount of the unearned premiums against any deficiency owed by the borrower; and

(2)delivers to the borrower any excess unearned premiums not credited against a deficiency under Subdivision (1).

Legislative history

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.