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.