(a) Each individualpolicy or group certificate shall provide that in the event of termination ofthe insurance prior to the scheduled maturity date of indebtedness, any refundof an amount paid by the debtor for insurance shall be paid or creditedpromptly to the person entitled thereto.
(b) The refund ofpremiums for decreasing term credit life insurance shall be the actuarialmethod of calculating refunds which produces a refund equal to the originalpremium multiplied by the ratio of the sum of the remaining insured balancesdivided by the sum of the original insured balances as of the due date nearestthe date of prepayment in full. The refund of premiums for single interestcredit property insurance and single interest physical damage insurance shallbe equal to the amount computed by the sum of digits formula known as the"Rule of 78." The refund of premiums for level term credit lifeinsurance and dual interest credit property insurance and dual interest physicaldamage insurance shall be equal to the pro rata unearned gross premiums.
(c) The refund ofpremiums in the case of credit accident and health insurance shall be equal toone‑half the amount computed by the sum‑of‑digits formulacommonly known as the "Rule of 78" plus one‑half the amount ofthe pro rata unearned gross premium.
In lieu thereof the refund maybe computed by the "Pure Premium" method. The refund is computed fromthe schedule of credit accident and health premiums and is equal to the premiumfrom that schedule which would be charged for such insurance in the amount ofthe total remaining benefits for the remaining term of the indebtednessoutstanding on the date of termination.
(d) No refund need bemade if the amount thereof is less than one dollar ($1.00).
(e) If a creditorrequires a debtor to make any payment for credit life insurance or creditaccident and health insurance and an individual policy or group certificate ofinsurance is not issued, the creditor shall immediately give written notice tosuch debtor and shall promptly make an appropriate credit to the account. (1975, c. 660, s. 1; 1981, c.759, s. 8; 1989, c. 485, s. 7; 2005‑181, s. 2.)
(a) Each individualpolicy or group certificate shall provide that in the event of termination ofthe insurance prior to the scheduled maturity date of indebtedness, any refundof an amount paid by the debtor for insurance shall be paid or creditedpromptly to the person entitled thereto.
(b) The refund ofpremiums for decreasing term credit life insurance shall be the actuarialmethod of calculating refunds which produces a refund equal to the originalpremium multiplied by the ratio of the sum of the remaining insured balancesdivided by the sum of the original insured balances as of the due date nearestthe date of prepayment in full. The refund of premiums for single interestcredit property insurance and single interest physical damage insurance shallbe equal to the amount computed by the sum of digits formula known as the"Rule of 78." The refund of premiums for level term credit lifeinsurance and dual interest credit property insurance and dual interest physicaldamage insurance shall be equal to the pro rata unearned gross premiums.
(c) The refund ofpremiums in the case of credit accident and health insurance shall be equal toone‑half the amount computed by the sum‑of‑digits formulacommonly known as the "Rule of 78" plus one‑half the amount ofthe pro rata unearned gross premium.
In lieu thereof the refund maybe computed by the "Pure Premium" method. The refund is computed fromthe schedule of credit accident and health premiums and is equal to the premiumfrom that schedule which would be charged for such insurance in the amount ofthe total remaining benefits for the remaining term of the indebtednessoutstanding on the date of termination.
(d) No refund need bemade if the amount thereof is less than one dollar ($1.00).
(e) If a creditorrequires a debtor to make any payment for credit life insurance or creditaccident and health insurance and an individual policy or group certificate ofinsurance is not issued, the creditor shall immediately give written notice tosuch debtor and shall promptly make an appropriate credit to the account. (1975, c. 660, s. 1; 1981, c.759, s. 8; 1989, c. 485, s. 7; 2005‑181, s. 2.)
(a) Each individualpolicy or group certificate shall provide that in the event of termination ofthe insurance prior to the scheduled maturity date of indebtedness, any refundof an amount paid by the debtor for insurance shall be paid or creditedpromptly to the person entitled thereto.
(b) The refund ofpremiums for decreasing term credit life insurance shall be the actuarialmethod of calculating refunds which produces a refund equal to the originalpremium multiplied by the ratio of the sum of the remaining insured balancesdivided by the sum of the original insured balances as of the due date nearestthe date of prepayment in full. The refund of premiums for single interestcredit property insurance and single interest physical damage insurance shallbe equal to the amount computed by the sum of digits formula known as the"Rule of 78." The refund of premiums for level term credit lifeinsurance and dual interest credit property insurance and dual interest physicaldamage insurance shall be equal to the pro rata unearned gross premiums.
(c) The refund ofpremiums in the case of credit accident and health insurance shall be equal toone‑half the amount computed by the sum‑of‑digits formulacommonly known as the "Rule of 78" plus one‑half the amount ofthe pro rata unearned gross premium.
In lieu thereof the refund maybe computed by the "Pure Premium" method. The refund is computed fromthe schedule of credit accident and health premiums and is equal to the premiumfrom that schedule which would be charged for such insurance in the amount ofthe total remaining benefits for the remaining term of the indebtednessoutstanding on the date of termination.
(d) No refund need bemade if the amount thereof is less than one dollar ($1.00).
(e) If a creditorrequires a debtor to make any payment for credit life insurance or creditaccident and health insurance and an individual policy or group certificate ofinsurance is not issued, the creditor shall immediately give written notice tosuch debtor and shall promptly make an appropriate credit to the account. (1975, c. 660, s. 1; 1981, c.759, s. 8; 1989, c. 485, s. 7; 2005‑181, s. 2.)
