Ill. Admin. Code tit. 50, § 1051.50 - Credit Life Insurance Rates
A
a) Premium Rate. Credit life
insurance premium rates for the insured portion of an indebtedness repayable in
equal monthly installments, where the insured portion of the indebtedness
decreases uniformly by the amount of the monthly installment paid, shall be as
set forth in subsections (a)(1), (2) and (3). Subsections (a)(4), (5) and (6)
refer to premium rates for other types of benefits either alone or in
combination with the type of benefits applicable to subsections (a)(1), (2) and
(3).
1) If premiums are payable monthly on
the outstanding insured balance basis for term insurance on a single insured
debtor, the prima facie premium rate shall be $.72 per month per $1,000 of
outstanding insured indebtedness .
2) If premiums are payable on a single
premium basis for term insurance which decreases in equal monthly amounts on a
single insured debtor, the prima facie premium rate shall be $.47 per annum per
$100 of initial insured indebtedness .
3) If premiums are payable on a single
premium basis for level term insurance on a single insured debtor, the prima
facie premium rate shall be $.94 per annum per $100 of initial insured
indebtedness .
4) A combination of
the appropriate rate for level term and the appropriate rate for decreasing
term (with equal decrements), if coverage provided is a combination of level
term and decreasing term (with equal decrements) on a single insured
debtor.
5) Joint credit life rate
shall be 1.67 times the appropriate single life rate.
6) If the benefits provided are other than
those described in subsections (a)(1), (2), (3), (4) and (5) of this
subsection, then rates for such benefits shall be actuarially consistent with
the rates provided in subsections (a)(1), (2), (3), (4) and (5) of this
subsection.
b)
Exclusions. The premium rates in subsection (a) shall apply to policies
providing credit life insurance to be issued with or without evidence of
insurability, to be offered to all debtors, and containing:
1) No exclusions other than suicide within
one year of the effective date of coverage. Under open-end credit plans, the
effective date of coverage may apply separately with respect to each additional
purchase or each additional loan to which the coverage relates.
2) Either no age restrictions, or age
restriction only for initial eligibility, making ineligible for coverage
debtors age 65 or over at the time indebtedness is incurred or debtors having
attained age 66 or over on the maturity date of the indebtedness , provided that
coverage will remain in full force and effect in the event the insurer accepts
premium on a debtor whose correctly stated age exceeds the maximum for
eligibility and the premium is not refunded within 60 days of
receipt.
3) Insurance written in
connection with an open-end credit plan may exclude from the classes eligible
for insurance, classes of debtors determined by age, and provide for the
cessation of insurance or reduction in the amount of insurance upon attainment
of not less than age 65.
4) On
insurance written in connection with open-end credit plans where the amount of
insurance is based on or limited to the outstanding unpaid balance, no
provision excluding or denying a claim for death resulting from a pre-existing
condition except for those conditions for which the insured debtor received
medical diagnosis or treatment within 6 months preceding the effective date of
coverage and which caused or substantially contributed to the death of the
insured debtor within 6 months following the effective date of coverage. The
effective date of coverage for each part of the insurance attributable to a
different advance or charge to the plan account is the date on which the
advance or charge is posted to the plan account.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.