(1) Upon prepayment in full of a consumer credit transaction by the proceeds of consumer credit insurance, the customer or the customer’s estate is entitled to a refund of any portion of a separate charge for insurance which by reason of prepayment is retained by the original creditor or any assignee or returned to either of them by the insurer. (2) This chapter does not require the creditor to grant a refund or credit if all the refunds and credits due to the customer under chs. 421 to 427 amount to less than $1 and, except as provided in sub. (1), does not require the creditor to account to the debtor for any portion of a separate charge for insurance because: (a) The insurance is terminated by performance of the insurer’s obligation; (b) The creditor pays or accounts for premiums to the insurer in amounts and at times determined by the agreement between them; or (c) The creditor receives directly or indirectly under any policy of insurance a gain or advantage not prohibited by law. (3) Except as provided in sub. (2), the creditor shall promptly make or cause to be made an appropriate refund or credit to the customer with respect to any separate charge made to the customer for insurance if: (a) The insurance is not provided or is provided for a shorter term than that for which the charge to the debtor for insurance was computed; or (b) The insurance terminates prior to the end of the term for which it was written because of prepayment in full or otherwise. (4) A refund or credit required by sub. (3) is appropriate as to amount if it is computed according to either s. 422.209 or a method prescribed or approved by the commissioner of insurance.
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