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This entry was published on 2014-09-22
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Credit upon anticipation of payments
§ 574. Credit upon anticipation of payments. 1. Notwithstanding the
provisions of any premium finance agreement to the contrary, any insured
may pay it in full at any time before the maturity of the final
instalment of the balance thereof and, if he does so and the agreement
included an amount for service charge, shall receive and be entitled to
receive for such anticipation a refund credit thereon.

2. The amount of any such refund credit shall represent at least as
great a proportion of the service charge, if any, as the sum of the
periodic balances after the month in which prepayment is made bears to
the sum of all periodic balances under the schedule of instalments in
the agreement. Such refund shall be computed in the service charge
exclusive of the additional charge. Where the amount of the refund
credit for anticipation of payment is less than one dollar, no refund
need be made.