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

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

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