Ill. Admin. Code tit. 50, § 1051.60 - Experience Reports and Adjustment of Prima Facie Rates

Current through Register Vol. 46, No. 15, April 8, 2022

a) Each insurer doing credit insurance business in this state shall annually file with the Director and the National Association of Insurance Commissioners (NAIC) Support & Services Office a report of credit life business written in Illinois on a calendar year basis. Such report shall utilize the Credit Insurance Supplement - Annual Statement Blank as approved by the National Association of Insurance Commissioners. Such filings shall be made no later than June 30th of each year.
b) Commencing July 1, 1991, and triennially thereafter, the Director will review the appropriateness of the prima facie rates set forth in Section 951.50 based upon credible Illinois experience data (statistical data that would show a negligible sampling error) collected from companies writing credit life insurance in the State during the preceding three years pursuant to subsection (a) above. The Director may determine therefrom the rate of expected claims on a statewide basis, and compare such rate of expected claims with the rate of actual claims for the preceding triennium, if actuarially appropriate, determined from the incurred claims and earned premiums at prima facie rates reported in the Annual Statement Supplement and filed with the Director pursuant to subsection (a) above. The Director shall also review changes in mortality experience for credit life insurance, changes in the average credit life policy or certificate size, changes in the fixed and variable expenses for credit life insurance, and other factors relevant to the credit life insurance premium rate including a reasonable profit margin for insurance companies writing credit insurance in determining whether to recommend a change in the prima facie rate as a result of this triennial review of credit life insurance experience.

Notes

Ill. Admin. Code tit. 50, § 1051.60
Recodified from 951.60 at 41 Ill. Reg. 15870.

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