Delaware Administrative Code
Title 18 - Insurance
1700 - Credit Life and Credit Health Insurance
1701 - Credit Life and Credit Health Insurance [Formerly Regulation 5]
Section 1701-5.0 - Refunds
Universal Citation: 18 DE Admin Code 1701-5.0
Current through Register Vol. 28, No. 3, September 1, 2024
5.1 In the event of termination of insurance prior to the scheduled maturity date of indebtedness by any circumstance including death, there shall be a refund or credit to the debtor of the proper portion of any amount paid by the debtor for the insurance.
5.1.1 The amount of the refund in the case of reducing term credit life insurance or of credit health insurance on which such charges to the debtor are payable to the insurance company by other than a single sum and of level term credit life insurance shall not be less than the pro rata gross unearned premium.
5.1.2 The amount of the refund in the case of reducing term credit life insurance or of credit health insurance on which the insurance charges to the debtor are payable to the insurance company in a single sum shall not be less than the amount computed by the "sum of digits" formula, commonly known as the "Rule of 78."
5.1.3 A premium refund or credit need not be made if the amount thereof is less than $1.00.
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