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§ 1007.8. Premiums and refunds

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. InsuranceEffective: July 27, 2010

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 40 P.S. Insurance (Refs & Annos)
Chapter 2. Insurance Companies (Refs & Annos)
Credit Insurance (Refs & Annos)
Effective: July 27, 2010
40 P.S. § 1007.8
§ 1007.8. Premiums and refunds
Currentness
(a) Any insurer may revise its schedules of premium rates from time to time and shall file such revised schedules with the commissioner. No insurer shall issue any credit life insurance policy or credit accident and health insurance policy for which the premium rate exceeds that determined by the schedules of such insurer as then on file with the commissioner: Provided, however, That1 the premium rate in effect on existing group policies may be continued until the first policy anniversary date following the date this act becomes operative as provided in section 12.2
(b) The following shall apply:
(1) Each individual policy or group certificate paid by single premium shall provide a notice that in the event of termination of the insurance, including by renewing or refinancing the covered indebtedness, prior to the scheduled maturity date of the indebtedness that:
(i) the debtor may be entitled to a refund of unearned premium;
(ii) the person who is the holder of the underlying debt instrument on the date the debt terminates shall provide notice to the insurer of the termination of the debt no later than sixty days after the termination, which notice shall include the name of the debtor and the payoff date of the underlying debt and any relevant contact information for the debtor known to the holder, or may alternatively provide notice directly to the debtor with instructions on how to obtain a refund from the insurer; and
(iii) any refund of an amount paid by the debtor for insurance shall be paid or credited promptly to the person entitled thereto after receipt of notice by the insurer.
(2) No refund for any amount less than five dollars ($5) need be made. The formula to be used in computing such refund shall be filed with and approved by the commissioner.
(c) If a creditor requires a debtor to make any payment for credit life insurance or credit accident and health insurance and an individual policy or group certificate of insurance is not issued, the creditor shall immediately give written notice to such debtor and shall promptly make an appropriate credit to the account.
(d) The amount charged to a debtor for any credit life or credit health and accident insurance shall not exceed the aggregate of the premiums to be charged by the insurer as computed at the time the charge to the debtor is determined.
(e) Nothing in this act shall be construed to authorize any payments for credit life or credit accident and health insurance now prohibited under any statute or rule thereunder governing credit transactions: Provided, however, That where payment for credit life or credit accident and health insurance is not prohibited under any statute or rule thereunder governing credit transactions, the commissions, dividends or other returns to the creditor therefrom shall not be deemed a violation of this or any other law, general or special, civil or criminal of the Commonwealth of Pennsylvania.

Credits

1961, Sept. 2, P.L. 1232, § 8. Amended 2010, March 29, P.L. 172, No. 17, § 1, effective in 120 days [July 27, 2010].

Footnotes

1
Enrolled bill omitted “That”.
2
40 P.S. § 1007.12.
40 P.S. § 1007.8, PA ST 40 P.S. § 1007.8
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document