§ 40-14-408 — Refund or credit required; amount

(a) Upon prepayment in full of a consumer credit sale or
consumer loan by the proceeds of consumer credit insurance, the
debtor or his estate is entitled to a refund of any portion of a
separate charge for insurance which by reason of prepayment is
retained by the creditor or returned to him by the insurer
unless the charge was computed from time to time on the basis of
the balances of the debtor's account.
(b) This article does not require a creditor to grant a
refund or credit to the debtor if all refunds and credits due to
the debtor under this article amount to less than one dollar
($1.00), and except as provided in subsection (a) of this
section does not require the creditor to account to the debtor
for any portion of a separate charge for insurance because:
(i) The insurance is terminated by performance of the
insurer's obligation;
(ii) The creditor pays or accounts for premiums to
the insurer in amounts and at times determined by the agreement
between them; or
(iii) The creditor receives directly or indirectly
under any policy of insurance a gain or advantage not prohibited
by law.
(c) Except as provided in subsection (b) of this section,
the creditor shall promptly make or cause to be made an
appropriate refund or credit to the debtor with respect to any
separate charge made to him for insurance if:
(i) The insurance is not provided or is provided for
a shorter term than that for which the charge to the debtor for
insurance was computed; or
(ii) The insurance terminates prior to the end of the
term for which it was written because of prepayment in full or
otherwise.
(d) A refund or credit required by subsection (c) of this
section is appropriate as to amount if it is computed according
to a method prescribed or approved by the commissioner of
insurance or a formula filed by the insurer with the
commissioner of insurance at least thirty (30) days before the
debtor's right to a refund or credit becomes determinable,
unless the method or formula is employed after the commissioner
of insurance notifies the insurer that he disapproves it.