Michigan Administrative Code
Department - Insurance and Financial Services
Insurance
Credit Insurance Rates, Forms, And Standards
Section R. 550.207 - Voluntary prepayment of indebtedness
Current through Vol. 24-04, March 15, 2024
Rule 7. If a debtor prepays his or her indebtedness other than as a result of his or her death or through a lump sum disability payment under a credit insurance policy covering the debtor, both of the following provisions apply:
(a) Any credit life insurance covering such indebtedness shall be terminated and an appropriate refund of the credit life insurance premium shall be made in accordance with R 550.113.
(b) Any credit accident and health insurance covering such indebtedness shall be terminated and an appropriate refund of the credit accident and health insurance premium shall be made in accordance with R 550.113. If a claim under such coverage is in process at the time of prepayment, the amount of refund may be determined as if the prepayment did not occur until the payment of benefits terminates. No refund need be made during any period of disability for which credit accident and health benefits are payable. A refund shall be computed as if prepayment occurred at the end of the disability period.
