Hawaii Administrative Rules
Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
Chapter 6 - CREDIT LIFE AND CREDIT DISABILITY INSURANCE
Subchapter 2 - RIGHTS AND TREATMENT OF DEBTORS
Section 16-6-9 - Involuntary prepayment of indebtedness
Current through August, 2024
If an indebtedness is prepaid by the proceeds of a credit life insurance policy covering the debtor or by a lump sum payment of a disability claim under a credit insurance policy covering the debtor, then it shall be the responsibility of the insurer to see that the following refunds are paid to the beneficiary, other than the creditor, named by the debtor or to the debtor's estate:
(1) In the case of prepayment by the proceeds of a credit life insurance policy, an appropriate refund of the credit disability premium in accordance with section 16-6-13;
(2) In the case of prepayment by a lump sum disability claim, an appropriate refund of the credit life insurance premium in accordance with section 16-6-13; and
(3) In either case, a refund of the unearned finance charge computed in accordance with the applicable finance laws or rules of this State which apply to voluntary prepayment provided that premiums paid to the insurer are based on an amount of insurance which includes unearned finance charges.