Regulatory Alerts2008-08-29
OFI Advisory Opinion No. 7 – Credit Insurance Rebates
The Office of Financial Institutions requires creditors to rebate the total unearned insurance premiums received from insurers directly to borrowers when consumer loans are prepaid. This mandate applies to financed credit insurance products and ensures compliance with Louisiana Consumer Credit Law provisions for premium cancellation. The calculation method used must correspond to the specific approach previously approved by the Louisiana Department of Insurance for the sold insurance product.
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