1. Purpose
This Refund Policy sets forth the terms and procedures by which the Company issues refunds of premium or other payments to insureds or payees of policies issued by the Company.

2. Scope
This Policy applies to all property/fire insurance policies issued by the Company (including dwellings, rental homes, mobile homes, farm buildings, personal property, etc.) within the territories authorized by the Company under its Certificate of Authority.

3. Refundable Amounts

  • In the event of cancellation, non-renewal, or adjustment of a policy, the Company will refund any unearned premium on a pro-rata (or as otherwise required by law) basis.

  • If a policy change such as a reduction in coverage, removal of a location, or other endorsement results in a lower premium, the resulting premium adjustment will be refunded (or credited) in accordance with this Policy.

  • Premium refund checks will be made payable to the Named Insured or the last payee on record for the policy unless otherwise directed by law or regulation.

4. Method and Timing of Refunds

  • Refunds will be made by check (or other method as approved by the Company) and mailed to the mailing address of the Named Insured or payee of the policy.

  • The Company shall attempt to issue refund payments within a reasonable period following the calculation of the refund amount and completion of cancellation or adjustment processing.

  • The Company may offset any outstanding premium, fees, or other amounts owed by the insured or payee against the refund, to the extent permitted by law.

5. Cancellation / Non-Renewal

  • When the insured or Company initiates policy cancellation (or the policy is non-renewed), the refund will be calculated from the effective date of the cancellation (or non-renewal) to the end of the policy term, less any applicable cancellation or short-rate charges if permitted by Tennessee law or the policy contract.

  • The Company will comply with all applicable Tennessee statutes or rules governing cancellation refunds.

  • If the policy is cancelled for non-payment or other cause, the refund may be subject to the terms of the policy (including possible short-rate calculation) and statutory requirements.

6. Installment Payment Plans

  • If a policy is written under an installment plan (e.g., annual premium paid in quarterly or monthly installments), the refund calculation will reflect the installment schedule and any fees associated with the installment plan (e.g., installment fees).

  • If a policy change or cancellation occurs mid-installment term, the Company will compute the refund based on the pro-rata premium for the remaining term, minus any unpaid installment fees or other authorized charges.

7. Non-Sufficient Funds (NSF) / Returned Payments

  • If a premium payment is returned for insufficient funds (or otherwise fails), the Company may either cancel the policy under the terms of the policy or continue coverage subject to payment of the returned amount plus any applicable fee.

  • In such event, any refund due (if applicable) will be calculated after resolution of the returned payment and any reinstatement or cancellation actions.

8. Communication and Requests

  • Insureds or payees seeking a refund should submit a written request to the Company’s accounting/finance department (or via agent/broker) identifying the policy number, effective date of cancellation (if applicable), and the payee mailing address for refund.

  • The Company will respond to refund inquiries in a timely manner and provide information regarding the status of the refund.

9. Offsets, Deductions and Application of Refunds

  • The Company reserves the right to deduct from any refund owed any amounts the insured or payee owes to the Company (such as outstanding premium, fees, legal charges) unless prohibited by law.

  • If the refund is being applied against future premium (or crediting toward renewal), the Company must notify the insured clearly and in writing of the credit or offset.

10. Record-Keeping

  • The Company shall keep records of refund computations, check issuance (or other method), and the payee address for a period consistent with Tennessee insurance record-keeping requirements.

11. Governing Law

  • This Refund Policy shall be governed by and construed in accordance with the laws of the State of Tennessee, including but not limited to the Tennessee Insurance Code and any rules promulgated by the Tennessee Department of Commerce & Insurance.

12. Amendment

  • The Company reserves the right to amend this Refund Policy from time to time. Any amendments shall be made available to insureds either via the Company’s website, policy documents, or by request.