Section R20-6-604.06. Refund Methods

A.      When refunding premiums as prescribed in A.R.S. § 20-1611, an insurer shall use the following methods:

1.        For insurance paid by a single premium, the Rule of Anticipation method; and

2.        For insurance paid by other than a single premium, a method that refunds at least the pro rata gross unearned amount charged to the debtor.

B.       The Director may approve other refund methods similar to those described in subsection (A), that are actuarially equiva- lent to the type of coverage the debtor purchased.

C.      An insurer’s refund method may recognize adjustments to a daily basis for interest or payments if the adjustments are con- sistent with the underlying credit transaction.

D.      An insurer is not required to refund any amount less than $5.

Historical Note

New Section made by final rulemaking at 8 A.A.R. 2725, effective June 7, 2002 (Supp. 02-2).