Current through Register Vol. 54, No. 24, June 15, 2024
Section 112.8 - Return of insurance premium(a) In the event of cancellation of a debtor's policy of insurance on repossession of personal property, the insurer or the creditor shall return any unearned premium on such policy to the debtor on a pro rata basis from date of cancellation. Any unearned premium amounting to less than $1.00 need not be returned to the debtor. If a policy of insurance covering such personal property is issued by a mutual insurer or a participating stock insurer, the debtor shall be entitled to the benefit of any dividend plan under an individual policy of insurance. There shall be no minimum retained retention of premium. In situations wherein a repossession is preceded by a total or constructive total loss of personal property the insurer shall compute its loss liability in accordance with the insurance provisions of the policy and shall forward a notice directly to the debtor or to his estate's personal representative which accurately states the amount of liability under the policy of insurance, the computation basis thereof and the amount of loss payment to the lender or lien-holder.(b) The insurer, or the creditor, after due written notice of full payment and satisfaction of lien, shall return any unearned premium on a debtor's policy of insurance to the debtor on a pro rata basis from date of termination. Any unearned premium amounting to less than $1.00 need not be returned to the debtor. If a policy of insurance covering such personal property is issued by a mutual insurer or a participating stock insurer, the debtor shall be entitled to the benefit of any dividend plan under any individual policy of insurance. A minimum retained retention of premium shall not exceed $1.00.