(a) Subsections (b) and (c) apply if:
(1) an agent or another person, firm, or corporation finances the payment of all or a portion of the premium for insurance coverage;
(2) there is an outstanding balance for the financing of the premium; and
(3) that balance, or an installment of that balance, is not paid before the expiration of the 10th day after the due date.
(b) The agent or other person, firm, or corporation to whom the balance described by Subsection (a) is due may request cancellation of the insurance coverage by:
(1) returning the policy, with proof that the insured was notified of the return; or
(2) requesting the association to cancel the insurance coverage by a notice mailed to the insured and to any others shown in the policy as having an insurable interest in the property.

(c) On completion of cancellation under Subsection (b), the association shall refund the unearned premium, less any minimum retained premium set forth in the plan of operation, to the person, firm, or corporation to whom the unpaid balance is due.
(d) If an insured requests cancellation of the insurance coverage, the association shall refund the unearned premium only if the cancellation was for one of the following reasons:
(1) the purchase of similar coverage in the voluntary market;
(2) sale of the insured property to an unrelated party;
(3) total loss of the insured property; or
(4) a determination by the association that the insured property is no longer insurable under the association’s rules and procedures.
(d-1) The property and casualty agent who received a commission as the result of the issuance of an association policy providing the coverage canceled under Subsection (d) shall refund the agent’s commission on any unearned premium in the same manner.
(d-2) An insured must provide proof in the form and manner prescribed by the association of a cancellation reason described by Subsection (d)(1), (2), or (3) to be eligible for a refund under that subsection.
(d-3) If an insured requests cancellation for a reason other than a reason described by Subsection (d) or fails to provide proof under Subsection (d-2), the insured’s premium is considered earned and is not refundable.
(e) For cancellation of insurance coverage under this section, the minimum retained premium in the plan of operation must be for a period of not less than the full annual policy term, except for events specified in the plan of operation that reflect a significant change in the exposure or the policyholder concerning the insured property, including:
(1) the purchase of similar coverage in the voluntary market;
(2) sale of the property to an unrelated party;
(3) death of the policyholder; or
(4) total loss of the property.