The provisions of this chapter, as revised, shall become
effective upon its approval by the Commissioner of Insurance and upon its
having been on file as a public document in the office of the Secretary of
State for ten days. The revisions shall apply to policies sold after December
31, 2002.
Author: Vincent R. Ledlow, Associate
Counsel
Notes
Ala. Admin. Code
r. 482-1-093-.14
New Rule: June 12, 1992;
effective June 22, 1992; Amended: October 15, 1996; 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. EXHIBIT 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. Author: Vincent R. Ledlow,
Associate Counsel Statutory Authority: Code of Ala. 1975, § 27-2-17. New
Rule: June 12, 1992; effective June 22, 1992; Amended: October 15, 1996;
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. EXHIBIT B INVOLUNTARY UNEMPLOYMENT INSURANCE The rate applicable
to involuntary unemployment insurance coverage shall not exceed the rates shown
in Table 1 for products which use the monthly outstanding balance as the rating
base. The rates in Table 1 assume a monthly indemnity equal to 3% of the
monthly outstanding balance. If the monthly indemnity is different than 3% of
the monthly outstanding balance, the rate shall be adjusted proportionally. The
rates in Table 1 are expressed as the rate per $100 of outstanding balance.
TABLE 1 Benefit Period in Months Non-retroactive Benefits for 30 day
elimination period and a 30 day waiting period Retroactive Benefits for 30 day
elimination period and a 30 day waiting period 3 $0.06 $0.09 6 $0.08 $0.12 9
$0.09 $0.13 12 $0.10 $0.14 The premium rate applicable to involuntary
unemployment insurance coverage shall not exceed the rates shown in Table 2 for
products that use the monthly benefit as the rating base. The rates are
expressed as the rates per $100 of monthly benefit. TABLE 2 Benefit Period in
Months Non-retroactive Benefits for 30 day elimination period and a 30 day
waiting period Retroactive Benefits for 30 day elimination period and a 30 day
waiting period 3 $2.20 $3.15 6 $2.75 $4.00 9 $2.95 $4.30 12 $3.15 $4.45 For
involuntary unemployment coverage that is purchased using a single premium and
the term of coverage is less than ten years, the rates shall not exceed the
product of the number of months in the term of the loan times the monthly rates
shown in Table 3. The rates are expressed per $100 of monthly benefit. TABLE 3
Benefit Period in Months Non-retroactive Benefits for 30 day elimination period
and a 30 day waiting period Retroactive Benefits for 30 day elimination period
and a 30 day waiting period 3 $1.65 $2.50 6 $2.20 $3.10 9 $2.35 $3.30 12 $2.45
$3.50 The rates in Tables 1, 2, and 3 assume single coverage for loss of
employment as a result of involuntary layoff, willful termination by employers,
strikes, labor disputes, and lockouts. A downward deviation filing will be
required if benefits are more restrictive than this standard. If coverage
includes benefits greater than the coverage contemplated in the rates set forth
above and the insurer desires to charge a rate higher than shown above, a
filing demonstrating the increase in benefits and proposed rate will be
required. Author: Vincent R. Ledlow, Associate Counsel Statutory Authority:
Code of Ala. 1975, § 27-2-17. New Rule: June 12, 1992; effective June 22,
1992; Amended: October 15, 1996; 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.
Statutory Authority:
Code of Ala.
1975, §
27-2-17.
