 |
Texas Statutes (Last Updated: January 4, 2014) |
 |
OCCUPATIONS CODE |
|
Title 8. REGULATION OF ENVIRONMENTAL AND INDUSTRIAL TRADES |
|
Chapter 1306. IDENTITY RECOVERY SERVICE CONTRACT PROVIDERS AND ADMINISTRATORS |
|
Subchapter C. PRACTICE BY IDENTITY RECOVERY SERVICE CONTRACT PROVIDERS, ADMINISTRATORS, AND SELLERS |
Sec. 1306.1081. CANCELLATION BY IDENTITY RECOVERY SERVICE CONTRACT HOLDER; REFUND
-
(a) An identity recovery service contract must allow the identity recovery service contract holder to cancel the identity recovery service contract at any time.
(b) If an identity recovery service contract holder cancels an identity recovery service contract before the 31st day after the date of purchase, the provider:
(1) shall refund to the identity recovery service contract holder or credit to the account of the identity recovery service contract holder the full purchase price of the contract, decreased by the amount of any claims paid under the contract; and
(2) may not impose a cancellation fee.
(c) If an identity recovery service contract holder cancels an identity recovery service contract on or after the 31st day after the date of purchase, the provider:
(1) shall refund to the identity recovery service contract holder or credit to the account of the identity recovery service contract holder the prorated purchase price of the contract reflecting the remaining term of the contract, based on mileage, time, or another reasonably applicable measure of the remaining term that must be disclosed in the contract, decreased by the amount of any claims paid under the contract; and
(2) may impose a reasonable cancellation fee not to exceed $50.
(d) A provider may allow an identity recovery service contract holder to cancel an identity recovery service contract on other terms included in the contract, provided the terms do not conflict with this section.
(e) A provider who does not pay the refund or credit the identity recovery service contract holder's account before the 46th day after the date notice of cancellation is received by the provider is liable to the identity recovery service contract holder for a penalty for each month an amount remains outstanding equal to 10 percent of the amount outstanding. The penalty is in addition to the full or prorated purchase price of the contract that is owed to the identity recovery service contract holder under this section or the terms of the contract.
(f) The right to cancel an identity recovery service contract is not transferable to a subsequent holder of the contract.