Haw. Code R. § 16-6-11 - Credit life insurance premium rates
(a) For declining
balance term credit life insurance, a single premium of forty cents per $100 of
initial insured indebtedness repayable in equal monthly installments over a
one-year period. Single premium rates for indebtedness repayable in equal
monthly installments other than twelve in number shall be one-twelfth of the
foregoing premium rate multiplied by the number of full months in the scheduled
repayment period.
(b) When monthly
premiums are charged on the basis of the then outstanding loan balance, a
monthly premium rate not to exceed 61.8 cents per $1,000 of outstanding balance
will be deemed the actuarial equivalent of the forty cents rate.
(c) For single life level term credit life
insurance, a single premium of seventy-four cents per $100 per annum.
(d) For joint life declining balance term
credit life insurance, a single premium rate of seventy cents per $100 of
initial insured indebtedness repayable in twelve equal monthly installments
over a one-year period.
(e) A
combination of the appropriate rate for level term and the appropriate rate for
declining balance term (with equal decrements), if coverage provided is a
combination of level term and declining balance term (with equal
decrements).
(f) The actuarial
equivalent of the rates in subsections (a), (b), (c), (d) and (e) if the
benefits provided are other than those described in these five subsections, or
if premiums are to be determined according to the age of the insured debtor or
by age bracket.
(g) The premium
rates specified above are presumed reasonable only in relation to a plan of
death benefits:
(1) Which does not contain
any exclusions or exceptions, other than suicide within one year of the
incurred indebtedness; and
(2)
Which does not contain any age restrictions, or only age restrictions making
ineligible for coverage debtors age sixty-five or over at the time the
indebtedness is incurred, or debtors who will have attained age sixty-six or
over on the maturity date of the indebtedness.
(h) If any insurer files for approval any
form providing coverage more restrictive than that described in subsection (g)
above, the insurer shall demonstrate to the satisfaction of the insurance
commissioner that the premium rates to be charged for such restricted coverage
shall produce a loss ratio not less than that contemplated for standard
coverage at the premium rates described in sections (a) to (f) above.
Notes
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