(a) Personal property insurance. If a loan is prepaid in full from the proceeds of a personal property insurance policy following a personal property loss, the refund should be computed as follows:
  (1) Total personal property loss, other than motor vehicle.
    (A) An interest refund must be computed as of the date the settlement check is received by the licensee or 45 days from the date of loss, whichever occurs first.
    (B) A credit insurance premium refund and collateral protection insurance premium refund must be computed as of the date the settlement check is received by the licensee.
    (C) A personal property insurance premium refund, other than an insurance premium refund on a motor vehicle, must be computed as of the day following the date of loss. In the event the borrower has requested cancellation, any dual-interest motor vehicle insurance premium refund must be computed as prescribed by the Automobile Rules and Rating Manual.
  (2) Partial personal property loss, other than motor vehicle.
    (A) An interest refund must be computed as of the date the settlement check is received by the licensee or 45 days from the date of loss, whichever occurs first.
    (B) A credit insurance premium refund and collateral protection insurance premium refund must be computed as of the date the settlement check is received by the licensee.
    (C) A personal property insurance premium refund, other than an insurance premium refund on a motor vehicle, must be computed as of the date the settlement check is received by the licensee. A dual-interest motor vehicle insurance premium refund must be computed as prescribed by the Automobile Rules and Rating Manual.
  (3) Total or partial motor vehicle insurance loss.
    (A) An interest refund must be computed as of the date the settlement check is received or 45 days from the date of loss, whichever occurs first.
    (B) A credit insurance premium refund must be computed as of the date the settlement check is received by the licensee.
    (C) A personal property insurance premium refund must be computed as of the date the settlement check is received by the licensee. A motor vehicle insurance premium refund must be computed as prescribed by the Automobile Rules and Rating Manual.
(b) Credit life insurance. If a loan is prepaid in full or in part by the proceeds of a credit life insurance claim, the refund should be computed as follows:
  (1) Complete prepayment. An interest refund, credit accident and health insurance premium refund, credit involuntary unemployment insurance premium refund, collateral protection insurance premium refund, and personal property insurance premium refund must be computed as of the date of death. A dual-interest motor vehicle insurance premium refund must be computed as prescribed by the Automobile Rules and Rating Manual in the event cancellation is requested by the proper representative of the estate.
  (2) Partial prepayment. If a loan is prepaid in part by the proceeds of a credit life insurance claim following the death of the primary borrower, any other credit insurance associated with the primary borrower, such as credit accident and health insurance and credit involuntary unemployment insurance, must be canceled. The refunds of the unearned credit insurance premiums must be computed as of the date of death.
(c) Credit accident and health insurance. If an insurance carrier has classified a disability as permanent and elected to prepay a loan in full, the interest refund, credit life insurance premium refund, credit involuntary unemployment insurance premium refund, or personal property insurance premium refund must be computed as of the day the settlement check is received by the licensee. If cancellation is requested by the borrower, any dual-interest motor vehicle insurance premium refund must be computed as prescribed by the Automobile Rules and Rating Manual.

Source Note: The provisions of this §83.809 adopted to be effective November 9, 2006, 31 TexReg 9001; amended to be effective November 4, 2010, 35 TexReg 9698; amended to be effective July 10, 2014, 39 TexReg 5142