Return of unearned premiums on cancellation.

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(2) In calculating the gross unearned premium due under a financed insurance policy, the insurer shall use the prorate method of calculation.

(3) In the event that the crediting of return premiums to the account of the insured results in a surplus over the amount due from the insured, the premium finance company shall refund such excess to the insured provided that no such refund shall be required if it amounts to less than $1. [1969 c.639 §13; 1983 c.239 §7; 2003 c.364 §150]


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