Ala. Admin. Code 482, ch. 482-1-093, exh. A - Credit Property Insurance

The dual interest rates applicable to credit property insurance when calculated on a net monthly outstanding balance basis shall be $2.35 per $1,000 of outstanding indebtedness per month. Inclusion of theft coverage on a dual interest basis shall allow an additional charge of $.65 per $1,000 of outstanding indebtedness per month. Single interest rates shall be 67% of the dual interest rates.

If premiums are payable on a single premium basis the following formula shall be used to develop single premium rates from the net monthly outstanding balance rates set forth above:

Sp = ((N+1)/20) X Op

where Sp is the single term premium per $100 of initial insured indebtedness, N is the credit term in months, and Op is the net monthly outstanding balance rate per $1,000 of outstanding indebtedness.

Notes

Ala. Admin. Code 482, ch. 482-1-093, exh. A

New Rule: June 12, 1992; effective June 22, 1992; Amended: October 15, 19 96; effective April 1, 1997. Amended: July 23, 2002; effective August 2, 2002. Filed with LRS July 23, 2002. Rule is not subject to the Alabama Administrative Procedure Act.

Author: Vincent R. Ledlow, Associate Counsel

Statutory Authority: Code of Ala. 1975, § 27-2-17.