427.140. Unearned premiums to be refunded.
Unearned premiums to be refunded.
427.140. Upon cancellation or expiration of collateral protectioncoverage, the amount of unearned premiums, if any, as calculated in accordancewith the policy approved by the department of insurance, financialinstitutions and professional registration as permitted by law, shall berefunded to the debtor. The amount of unearned premiums, however, may not becalculated by the rule of 78 or sum of the digits method. A refund ofunearned premiums may be credited to the debtor's obligation under the creditagreement or distributed directly to the debtor by check or other means.
(L. 1997 H.B. 257)