Arkansas Code
Chapter 87 - Model Act for the Regulation of Credit Life Insurance and Credit Disability Insurance
§ 23-87-113. Premiums and refunds

(a)
(1) Each insurer issuing credit life insurance or credit disability insurance shall file with the Insurance Commissioner its schedules of premium rates for use in connection with the insurance.
(2) Any insurer may revise the schedule from time to time and shall file the revised schedules with the commissioner.
(3) No insurer shall issue any credit life insurance policy or credit disability insurance policy for which the premium rate exceeds that determined by the schedules of the insurer as then on file with the commissioner.
(4) The commissioner 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 § 23-87-112.
(5)
(A) The commissioner shall have exclusive jurisdiction to approve all credit life insurance and credit disability insurance rates, policies, group certificates of insurance and related notices, applications, binders, endorsements, and riders issued in this state.
(B) Rates regarding credit life insurance or credit disability insurance that have been promulgated or approved by the commissioner are deemed to be valid unless changed under the Arkansas Insurance Code or the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
(C)
(i) There shall be no private cause of action for challenging credit life insurance or credit disability insurance rates that have been promulgated or approved by the commissioner.
(ii) Any action or process challenging or questioning the validity of credit life insurance and credit disability rates approved by the commissioner shall be brought only in the State Insurance Department under applicable provisions of the Arkansas Insurance Code or under procedures established by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

(b)
(1) Each individual policy, group certificate, or notice of proposed issuance of credit life insurance and credit disability insurance shall provide that in the event of termination of the insurance prior to the scheduled maturity date of the indebtedness, any refund of premium due shall be paid or credited promptly to the person entitled thereto. However, the commissioner shall prescribe a minimum refund, and no refund that would be less than the minimum need be made.
(2)
(A) The formula to be used in computing refunds shall be filed with the commissioner.
(B) The Rule of 78s is a permissible method of computing refunds for reducing term credit life insurance or reducing credit disability insurance on which the insurance charges to the debtor are paid in a single sum.
(C) The formula used for computing refunds shall be disclosed in the policy or group certificate of insurance.

(3)
(A) The commissioner shall have the exclusive jurisdiction to promulgate or approve methods of computing refunds of unearned premiums.
(B) Any formula or method used or approved by the commissioner for determining the return of unearned premium under this section shall be deemed to be fair and reasonable.
(C)
(i) There shall be no private cause of action to challenge any method of refunding unearned premium that has been promulgated or approved by the commissioner under this section.
(ii) Any action or process challenging or questioning the method of refunding an unearned credit life insurance and credit disability insurance premium that has been approved by the commissioner shall be brought only in the department under applicable provisions of the Arkansas Insurance Code or under procedures established by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

(c) If a creditor requires a debtor to make a payment in connection with credit life insurance or credit disability insurance and an individual policy or group certificate of insurance is not issued, the creditor shall immediately give written notice to the debtor and shall promptly make an appropriate credit to the account.