Section 16-6-13 - Refunds(a) Section 431:10B-109, HRS, requires that the formula to be used in computing refunds be filed with and approved by the insurance commissioner. (1) Schedules used to compute the refund in connection with single premium declining balance term credit life insurance and single premium credit disability insurance must provide for a refund at least equal to that which would be provided by application of the so-called "Rule of 78" (also called the "sum of the digits" method).(2) Schedules used to compute the refund in connection with single premium level term credit life insurance must provide for a refund at least equal to the amount which would be provided by the "pro rata" method.(3) An appropriate combination of the pro rata method for level term and the Rule of 78 method for declining balance term if the coverage provided is a combination of level term and declining balance term.(b) At the option of the insurer but consistent with subsection (a) either: (1) No charge for credit insurance be made for the first fifteen days of a month and full month be charged for sixteen days or more of a month; or(2) A refund be made on a pro rata basis for each day within the month.(c) A refund or credit need not be made where the amount thereof is less than one dollar.(d) The requirements for filing refund formulas shall be considered met if they are set forth in the individual policy or group certificate filed with and approved by the insurance commissioner.[Eff 6/22/81; am and comp 12/16/88] (Auth: HRS §§ 431:2-201, 431:10B-113) (Imp: HRS § 431:10B-109)