40-14-454. Refund of certain credit insurance products upon prepayment; method.
(a) Not later than sixty (60) days after termination of a consumer credit sale or consumer loan, a creditor shall facilitate any refund or credit otherwise required by law for insurance or other loan products that provide protection to a consumer and cease when termination of the credit transaction occurs, including guaranteed asset protection waivers and debt cancellation contracts. The duty to facilitate a refund or credit under this subsection shall also apply to voluntary cancellation of insurance or other products by a consumer. As used in this subsection:
(i) "Creditor" means the person to whom payment is due at the time of termination;
(ii) "Termination" includes prepayment, default or other circumstances that end an agreement.
(b) Unless otherwise provided by law, any required refund or credit made under subsection (a) of this section shall be calculated on a pro rata basis or on an alternative basis that reflects the remaining risk if authorized and defined by rule of the administrator.