Refund formulas

(a) An insurer may not charge a premium for consumer credit insurance for a loan month in which the policy is terminated within the first 15 days. An insurer may charge a full month's premium if a consumer credit insurance policy is terminated on or after the 16th day of the loan month. (b) As part of a rate filing an insurer shall file the formula to be used in computing refunds. The method of computing refunds must be clearly stated in a group policy, group certificate, or individual policy.

(c) An insurer is not required to make a refund of $5 or less unless an existing debt is refinanced or consolidated.