KRS 304.19-090: Premiums and refunds.

(1) Any insurer may revise its schedules of premium rates from time to time, and shall

file such revised schedules with the commissioner. No insurer shall issue any credit

life insurance or credit health insurance policy for which the premium rate exceeds

that determined by the schedules of such insurer as then on file with the

commissioner.

(2) Each individual policy or group certificate shall provide that in the event of

termination of the insurance prior to the scheduled maturity date of the

indebtedness, an y refund of an amount paid by the debtor for insurance shall be

paid or credited promptly to the person entitled thereto. The commissioner shall

prescribe a minimum refund and no refund which would be less than such

minimum need be made. The formula to be used in computing such refund shall be

filed with and approved by the commissioner. Nothing contained in this section

shall require the debtor to surrender any policy or group certificate for cancellation

or termination solely because the indebtedness has been paid in full prior to the

scheduled maturity date nor require the insurer to return any premiums.

(3) When a debtor purchases credit life insurance or credit health insurance and an

individual policy or group certificate of insurance is not issued, th e creditor shall

immediately give written notice to such debtor and shall promptly make an

appropriate credit to the account.

(4) The amount charged to a debtor for any credit life insurance or credit health

insurance shall not exceed the premiums charged by the insurer, as computed at the

time the charge to the debtor is determined.

(5) Nothing in KRS 304.19 -020 to 304.19 -140 shall be construed to authorize any

payments for insurance now prohibited under any statute, or rule thereunder,

governing credit transactions.