(215 ILCS 5/155.58)
(from Ch. 73, par. 767.58)
Premiums and refunds.
(a) Each insurer issuing credit life insurance or credit accident and
health insurance shall file with the Director its schedules of premium
rates for use in connection with such insurance. Any insurer may revise
such schedules from time to time, and shall file such revised schedules
with the Director. No insurer shall issue any credit life insurance policy
or credit accident and health insurance policy for which the premium rate
exceeds that determined by the schedules of such insurer as then on file
with the Director. The Director may require the filing of the schedule of
premium rates for use in connection with and as a part of the specific
policy filings as provided by Section 155.57.
(b) Each individual policy, group certificate or notice of proposed
insurance shall provide that in the event of termination of the insurance
prior to the scheduled maturity date of the indebtedness, any refund of an
amount paid by the debtor for insurance shall be paid or credited promptly
to the person entitled thereto; provided, however, that the Director 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 Director.
(c) If a creditor requires a debtor to make any payment for credit life
insurance or credit accident and health insurance and an individual policy
or group certificate of insurance is not issued, the creditor shall
immediately give written notice to such debtor and shall promptly make an
appropriate credit to the account.
(d) The amount charged to a debtor for credit life or credit health and
accident insurance shall not exceed the premium charged by the insurer, as
computed at the time the charge to the debtor is determined.
(e) Nothing in this Article shall be construed to authorize any payments
for insurance now prohibited under any statute, or rule thereunder,
governing credit transactions.
(Source: Laws 1959, p. 1140