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(a) If insurance for which a charge is included in or added to the loan contract is canceled, adjusted, or terminated, the lender shall:
(1) credit to the amount unpaid on the loan the amount of the refund received by the lender for unearned insurance premiums, less the amount of the refund that is applied to the purchase by the lender of similar insurance; and
(2) if the amount to be credited under Subdivision (1) is more than the unpaid balance, refund promptly to the borrower the difference between those amounts.
(b) A cash refund is not required under this section if the amount of the refund is less than $1.
Cite this article: FindLaw.com - Texas Finance Code - FIN § 342.409. Lender's Duty if Insurance is Adjusted or Terminated - last updated April 14, 2021 | https://codes.findlaw.com/tx/finance-code/fin-sect-342-409.html
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