(1) Section 33-21-206, MCA, requires that the
formula to be used in computing refunds be filed with the commissioner of
(2) Any refund formula
which is at least as favorable to the insured debtor as the "sum of the
digits" formula (also called the "rule of 78ths") for single
premium plans, or pro rata for other plans, is acceptable to the commissioner.
refund or credit need not be made if the amount thereof is less than $1.00.
(4) If credit life
insurance on a debtor terminates prior to expiration of the period for which a
charge for such insurance has been made to the debtor, by reason of early discharge
of indebtedness by cash or refinancing, or by payment of a lump sum disability
insurance claim, or otherwise, except by payment of a death claim under the
credit life insurance policy, a refund of such charge for insurance shall be
made to the debtor or credited to his account. If credit accident and health insurance
on a debtor terminates prior to expiration of the period for which a charge for
such insurance has been made to the debtor, for any reason whatsoever except
for payment of a lump sum disability insurance benefit, a refund of such charge
for insurance shall be made to the debtor, or to his beneficiary or estate, as
appropriate. In any refinancing or consolidation of an indebtedness, no policy
provision covering the new indebtedness shall operate to deny benefits which
would have been payable had the refinancing or consolidation not taken place.