California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 40 - Industrial Loans
Article 9 - Credit Insurance
Section 40.903 - Rebates of Unearned Credit Insurance Premiums
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) When a loan is fully prepaid, an industrial loan company shall rebate any unearned credit insurance premium to the borrower. If a loan becomes fully prepaid on or before 15 days after the loan was made, the entire credit insurance premium must be rebated to the borrower.
(b) When a loan is paid by credit life insurance, any unearned credit disability insurance premium must be promptly refunded to the borrower's heirs or estate and the refund must be computed as of the date of the borrower's death.
1. Change without regulatory effect renumbering former section 1204 to new section 40.903 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
Note: Authority cited: Section 18327, Financial Code. Reference: Section 18290, Financial Code.