Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 1 - Banking, Securities, Small Loans and Corporations
Chapter 07 - Premium Finance Companies
Article 4 - Loans, Payments, and Refunds
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.