Ariz. Admin. Code § R20-6-604.02 - Satisfying the Reasonableness Standard
A. An insurer shall comply with all
requirements of A.R.S. §
20-1610
regarding premium and insurance charges.
B. An insurer may satisfy the reasonableness
standard in A.R.S. §
20-1610(B) if the insurer's premium rate develops a
loss ratio of not less than 50% for credit life insurance and not less than 60%
for credit disability insurance.
C.
While in effect, the rates described in
R20-6-604.04 and
R20-6-604.05, subject to any deviations approved under R20-6-604.08 are conclusively presumed
to develop the loss ratios described in subsection (B). For purposes of
prospective effect, the Department may rebut this presumption by disapproving
or withdrawing approval for the rates as prescribed in A.R.S. §
20-1610.
D. An insurer may provide coverage other than
the standard coverage described in
R20-6-604.04 and
R20-6-604.05.
An insurer that wishes to provide nonstandard coverage shall:
1. File the nonstandard coverage policy
information as prescribed in A.R.S. §
20-1609,
and
2. Demonstrate that the rates
for the coverage are reasonably expected to develop a loss ratio of not less
than 50% for credit life insurance and not less than 60% for credit disability
insurance.
Notes
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