USAA Federal Savings Bank USAA balks at Texas law by denying pro-rated refund of vehicle 'gap insurance' San Antonio, Texas

Of course, you may have insight into how this doesn't apply which I'd be grateful to read BUT my original claim, minus the particular cited law seems to be correct. Under the Texas Insurance Code Chapter 558 USAA is required in no uncertain terms to refund unearned premium reserves. Since the 'Total Loss Protection' particularly covers the entire loan period in action and function, when the Protection is cancelled and an unearned premium remains (for the remainder of the loan), a pro rated refund is obviously due. I look forward to your rebuttal. In the meantime, I'll keep researching so I don't look like a complete idiot in my upcoming complaint filing with the state's attorney general.

I appreciate the clarification as to my reference of the law I cited. It sounds like you know a lot about the subject and therefore may be familiar with other applicable laws that actually would apply. Any help in that regard would be appreciated...so I'll be very curious to see if you respond.

I will research this issue further and hopefully provide an update. I've received gap insurance pro rated refunds before and would guess that the company would not have given me money if there wasn't a provision somewhere that requires them to do so.

And, yes, they do have a legal team which has somehow come up with a distinction to not call this gap insurance even though it is one and the same. Also, I'm positive it wouldn't be the first time a dishonorable entity such as USAA had lawyers split hairs to make a few bucks.

The 'Total Loss Protection' probably doesn't fit into the category I'll need to apply the law I'll likely find, granted, and thanks to USAA's shady distinction. However, I still don't think their distinction would hold before a judge, which means they are acting in bad faith.

If nothing else, I will be transferring my business elsewhere as it becomes feasible. I think the spirit of my issue is still right on, minus my apparently incorrect citing of the law. Thanks for your insight.

You might want to actually read that law that you quoted.  If you had actually bothered to read the important "Scope" section, you would have noticed that it only applies to bad-credit lenders (defined as those that charge over 10% interest per year and with a few other restrictions).  Since I doubt that USAA falls into that category, they are not bound by that law. 

But seriously, if you think a provision of a contract doesn't apply because of relevant law -- consult a lawyer before you sign the contract, because you are very likely wrong.  Companies usually have very good lawyers, and they won't intentionally put in provisions that are contrary to state law.  That exposes them to all sorts of legal liability (for example, the entire contract may be held invalid, or they may be forced to pay a big class-action settlement).