AN ACT FURTHER REGULATING THE REFUND OF FINANCE CHARGES UPON CANCELLATION OF AN INSURANCE CONTRACT.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Section 21 of chapter 255C of the General Laws, as appearing in the
1986 Official Edition, is hereby amended by striking out the first sentence
and inserting in place thereof the following sentence:- Upon the
cancellation of an insurance contract the insured shall be entitled to a
refund of the finance charges, such refund to be computed on a method which
is at least as favorable to the insured as the actuarial method, so-called,
from the effective date of cancellation irrespective of the time when the
premium finance agency is reimbursed by the insurer or insurers.