Ill. Admin. Code tit. 50, § 1053.10 - Computation of Premium Refunds
a) The
refund of return premiums in the case of Decreasing Term Insurance issue under
Article IX1/2 of the Illinois Insurance Code shall be computed by the "Sum of
Digits" formula, commonly known as the "Rule of Seventy Eighths".
b) The refund of return premiums in the case
of Level Term Life Insurance shall be equal to the pro rata gross unearned
premium.
c) A premium refund need
not be made if the amount thereof is less than $1.00.
Notes
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