§ 25A-36. Certificates of insurance and rebates. - North Carolina Statutes

§25A‑36.  Certificates of insurance and rebates.

(a)        Within 45 daysfollowing the purchase of insurance by the buyer from or through the seller,the seller shall deliver, send or cause to be sent to the buyer a policy orpolicies of such insurance or a certificate or certificates thereof. If suchinsurance is cancelled, or the premium adjusted, any rebate received by theseller shall be promptly applied to the purchase of other similar insurance,credited to the buyer's account, or rebated to the buyer. Unless otherwiserequired by law or the provisions of the policy, rebates of cancelled insuranceshall be computed under the rule of 78's, without the deduction of a prepaymentcharge.

(b)        In those caseswhere the insurance premium is added in the contract, and the buyer did notactually pay the premium, the return premium plus unearned finance charge onthe amount of returned premium (at the same rate as used in the contract) shallbe credited to the unpaid balance of the contract. If the required insurance premiumis adjusted upward by the insurance company or is added in accordance with thecontract, the buyer, after 10 days' notice,

(1)        May pay theadditional premium, or

(2)        Have the additionalpremium plus finance charge (at the same rate as used in the contract) added tothe unpaid balance and spread equally over the remaining installments unpaid,provided, the seller may require a buyer who wishes to finance such additionalpremium to be financed by the seller in accordance with North Carolina insuranceregulations. (1971, c. 796, s. 1; 1977, c. 650.)