(1) If a debt cancellation contract or debt suspension agreement is terminated, including, for example, when the customer prepays the covered loan, a bank shall refund to the customer any unearned fees paid for the contract unless the contract provides otherwise.

(2) A bank may offer a customer a contract that does not provide for a refund only if the bank also offers that customer a bona fide option to purchase a comparable contract that provides for a refund.

(3) A bank shall calculate the amount of a refund using a method at least as favorable to the customer as the actuarial method.