Regulatory Alerts1997-10-01
Alabama Consumer Credit Act Refunds
The Alabama Department of Finance, acting under the Consumer Credit Act, mandates that creditors cancel and refund unearned insurance premiums when a debt is prepaid, renewed, or refinanced. These refunds must align with regulations set by the Commissioner of Insurance, with the specific exception that credit life insurance premiums are considered fully earned upon the borrower's death. The regulation further stipulates that no refund is required for any single insurance coverage where the amount is less than one dollar.
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