- (a) If a premium finance agreement is terminated because of a borrower's default, the refund of the unearned service charge must be computed by the licensee from the date that the borrower's balance was paid in full.
- (b) A refund credit of the unearned service charge made under this section must be computed by the licensee in accordance with the sum-of-the-digits method, commonly known as the Rule of 78's.
- (c) The nonrefundable charge of a maximum of $10 per premium finance agreement may be excluded from the computation for a refund under this section since interest may not be charged for that fee.
(Eff. 4/28/79, Register 70; am 11/14/80, Register 76; am 4/16/2000, Register 154)
Authority: AS 06.40.120, AS 06.40.150, AS 06.40.180