§ 40-14-454 — Refund of certain credit insurance products upon prepayment; method

(a) Not later than sixty (60) days after termination of a
consumer credit sale or consumer loan, a creditor shall
facilitate any refund or credit otherwise required by law for
insurance or other loan products that provide protection to a
consumer and cease when termination of the credit transaction
occurs, including guaranteed asset protection waivers and debt
cancellation contracts. The duty to facilitate a refund or
credit under this subsection shall also apply to voluntary
cancellation of insurance or other products by a consumer. As
used in this subsection:
(i) "Creditor" means the person to whom payment is
due at the time of termination;
(ii) "Termination" includes prepayment, default or
other circumstances that end an agreement.
(b) Unless otherwise provided by law, any required refund
or credit made under subsection (a) of this section shall be
calculated on a pro rata basis or on an alternative basis that
reflects the remaining risk if authorized and defined by rule of
the administrator.