TITLE 50: INSURANCE
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AUTHORITY: Implementing Section 155.58 and authorized by Section 155.62 of the Illinois Insurance Code [215 ILCS 5/155.58 and 155.62].
SOURCE: Filed November 20, 1959, effective December 1, 1959; codified at 7 Ill. Reg. 2366; transferred from the Department of Insurance to the Department of Financial and Professional Regulation pursuant to Executive Order 2004-6 on July 1, 2004; transferred from the Department of Financial and Professional Regulation to the Department of Insurance pursuant to Executive Order 2009-4 on June 1, 2009; recodified from Part 953 to Part 1053 at 41 Ill. Reg.15873.
Section 1053.10 Computation of Premium Refunds
a) The refund of return premiums in the case of Decreasing Term Insurance issue under Article IX½ of the Illinois Insurance Code shall be computed by the "Sum of Digits" formula, commonly known as the "Rule of Seventy Eighths".
b) The refund of return premiums in the case of Level Term Life Insurance shall be equal to the pro rata gross unearned premium.
c) A premium refund need not be made if the amount thereof is less than $1.00.