"Surplus lines policies, while offering specialized coverage options, have unique features regarding premium refunds. A minimum earned premium (MEP) is a standard practice, meaning a portion of the premium is not refundable, even if the policy is canceled. This is typically a 25% of the total premium, but it's crucial to review your specific policy document for details. 

Minimum Earned Premium:

A percentage of the policy premium is considered "earned" upon issuance and is non-refundable. This is typically 25%.

Early Cancellation:

If you cancel your policy before the term ends, you'll receive a prorated refund for the unused portion, but the minimum earned premium (and other fees) will not be returned.

Non-Refundable Fees:

In Texas, agency/broker fees, inspection fees, and commissions are not refundable.

Review Your Policy:

Always review your specific policy document for the exact terms and conditions and for minimum earned premiums and non-refundable fees. 

Why This is Important:

Understand that a portion of your premium may not be refundable, even if you cancel the policy. 

Broker/Agency Fees:

Be aware that agency/broker fees, inspection fees, and commissions are non-refundable in Texas