Texas · Through 89th 2nd Called Legislative Session, 2025

Tex. Insurance Code § 549.003: CANCELLATION OF POLICY AFTER FORECLOSURE AUTHORIZED.

Where this section sits in the code

INSURANCE CODE
TITLE 5. PROTECTION OF CONSUMER INTERESTS
SUBTITLE C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES
CHAPTER 549. PROHIBITED PRACTICES RELATING TO PROPERTY INSURANCE
SUBCHAPTER A. GENERAL PROVISIONS

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).

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

Collected 2026-08-27T01:47:21Z. Source file · JSON

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