Consumer Credit Regulation: 6.10.2 Rebates upon Default and Acceleration of the Debt
Some state statutes require that all unearned charges, including insurance, be rebated on prepayment, and further require that acceleration be treated as prepayment.641 Review the terms of the master policy between creditor and insurer, if group insurance, or the borrower’s policy if individually insured. The insurance contract may require the rebate.