3 AAC 07.330 - Refund of unearned service charge on accounts terminated due to default
(a) If a
premium finance agreement is terminated because of a borrower's default, the
refund of the unearned service charge must be computed by the licensee from the
date that the borrower's balance was paid in full.
(b) A refund credit of the unearned service
charge made under this section must be computed by the licensee in accordance
with the sum-of-the-digits method, commonly known as the Rule of
78's.
(c) The nonrefundable charge
of a maximum of $10 per premium finance agreement may be excluded from the
computation for a refund under this section since interest may not be charged
for that fee.
Notes
Authority:AS 06.40.120
AS 06.40.150
AS 06.40.180
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.