Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 25 - INSURANCE PREMIUM FINANCE
Subchapter C - OPERATIONS
Section 25.56 - Alternative Methods of Adjusting Accounts
Current through Reg. 50, No. 13; March 28, 2025
(a) Any amount found to be due an insured may be credited to the next payment(s) on the account of the insured when the insured has an existing obligation to the licensee. The licensee must notify the insured in writing of the date and amount of the next payment due after this credit has been given.
(b) Alternatively, if the error correction or adjustment to an account is related to an improper charge or proceeds improperly held by licensee on which interest has been precomputed, the licensee may credit the final maturing installment(s) of the contract provided credit is also given the insured for the proportionate interest originally charged on the amount being credited. The licensee must notify the insured in writing of any amount being credited and the resulting change in the final maturing installments.
