Minimum Retained Premium

(a) Except as provided in this section and subject to Insurance Code §2210.204, concerning Cancellation of Certain Coverage, for cancellation of insurance coverage, the minimum retained premium on a TWIA policy issued on an annual basis is equal to the premium for the full annual policy term.

(b) A TWIA policy is subject to a $100 minimum retained premium if it is canceled because of:

(1) any of the reasons specified in Insurance Code §2210.204(d);

(2) a change in majority ownership of the insured property, including foreclosure of the insured property; or

(3) the death of the policyholder.

(c) Any unearned premium after the application of the minimum retained premium in this section must be refunded pro rata.

(d) TWIA may not issue a new or renewal policy to an applicant who owes premium on a prior TWIA policy.

(e) The minimum retained premium may not create or extend coverage beyond the policy's effective cancellation date.

Source Note: The provisions of this §5.4905 adopted to be effective February 24, 2010, 35 TexReg 2160; amended to be effective January 8, 2012, 36 TexReg 9331; amended to be effective January 8, 2025, 50 TexReg 158.