Section 3 AAC 07.330 - Refund of unearned service charge on accounts terminated due to default(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 154Authority:AS 06.40.120
AS 06.40.150
AS 06.40.180