Section 2248.38 - Life and Disability Premium Refunds(a) Refunds of single premiums pursuant to Insurance Code § 779.14 shall not be less than amounts calculated as follows: (1) For life insurance, the single premium for the scheduled remaining insured amount and term of coverage.(2) For disability insurance: Refund | = | Original Single Premium X (t/n)(SPt/SPn) - $10 |
Where: | | |
| t | = | the remaining term in months |
| n | = | the original term in months |
| SPt | = | the single premium per $1000 remaining insured amount |
| SPn | = | the original single premium per $1000 initial insured amount |
| | | |
(3) Refunds of less than $5.00 per policy or certificate need not be made. If insurance has terminated due to refinancing of the covered indebtedness and new credit insurance is provided by the same insurer on the refinanced indebtedness, the entire refund amount, including the minimum refund provided for herein and the $10 retention provided for in paragraph (2) (if the terminated indebtedness was insured for disability), shall be applied toward the premium for the new credit insurance.(b) No refund of monthly life or disability premiums is required. Any monthly premium collected on a billing date after the effective date of termination of coverage shall be refunded without any reduction whatsoever.(c) Single disability premiums shall be refunded as provided in this section when coverage terminates due to death.(d) For purposes of this Section, partial months of coverage shall be computed on a daily prorata basis. Alternatively, a partial month of coverage of 15 days or less shall be ignored; a partial month of coverage exceeding 15 days shall be counted as a whole month. Insurers shall use the same method of computing partial months of coverage for all debtors of a given creditor covered by the same plan of benefits.(e) This Section does not supersede any other statute or regulation which would require a greater refund.(f) The Commissioner hereby waives the filing, under Insurance Code § 779.14, of refund formulas which are the same as those set forth in this Section.Cal. Code Regs. Tit. 10, § 2248.38
1. New section filed 4-14-94; operative 5-16-94. Submitted to OAL for printing only pursuant to Government Code section 11343(a)(1) (Register 94, No. 15). Note: Authority cited: Section 779.21, Insurance Code. Reference: Section 779.14, Insurance Code.
1. New section filed 4-14-94; operative 5-16-94. Submitted to OAL for printing only pursuant to Government Code section 11343(a)(1) (Register 94, No. 15).