Utah Admin. Code R590-228-7 - Additional Procedures for Credit Life and Credit Accident and Health Form and Rate Filings

(1) An insurer filing a credit life or a credit accident and health form shall comply with:

(a) Title 31A, Chapter 21, Insurance Contracts in General;

(b) Title 31A, Chapter 22, Part 4, Life Insurance and Annuities;

(c) Title 31A, Chapter 22, Part 5, Group Life Insurance;

(d) Title 31A, Chapter 22, Part 6, Accident and Health Insurance;

(e) Title 31A, Chapter 22, Part 7, Group Accident and Health Insurance;

(f) Title 31A, Chapter 22, Part 8, Credit Life and Accident and Health;

(g) Rule R590-91;

(h) Rule R590-191; and

(i) Rule R590-192.

(2)

(a) A credit life or credit accident and health insurance policy, rider, or endorsement affecting a benefit shall be accompanied by a rate filing.

(b) A rate filing is not required if the form filing does not impact the rate, however the filing description shall explain the reason there is not a change in the rate.

(3) Actuarial Memorandum.

(a) An actuarial memorandum shall be included in a credit life and credit accident and health insurance rate filing.

(b) An actuarial memorandum shall demonstrate compliance with Section 31A-22-807.

(c) An actuarial memorandum shall include a description of the following:

(i) type of coverage, such as gross or net, level or decreasing, single or joint life, full term or truncated, or critical period;

(ii) type of loan to be insured, such as open end or closed end;

(iii) type of premium charge, such as single premium, monthly outstanding balance, or another method explained in detail;

(iv) duration of loan and duration of coverage;

(v) rates per unit, ratings, and premium methodologies, including;

(A) formulas used for each type of coverage and premium method; and

(B) sample calculations for each type of coverage and premium method;

(vi) refund method and calculation, including formulas for each type of coverage; and

(vii) reserve bases, including methods used.

(d)

(i) An actuarial memorandum shall include certification of compliance with Section 31A-22-807 by a qualified actuary.

(ii) The certification shall confirm that the formulas and methods used produce rates that are compliant for each type of coverage and duration in the filing.

(4) Rate Schedules.

(a) A rate schedule shall be included for:

(i) each type of coverage; and

(ii) representative durations.

(b) Rates shall be identified as:

(i) prima facie rates;

(ii) deviated rates submitted pursuant to Section 31A-22-807; or

(iii) rates on nonstandard coverage pursuant to Subsection R590-91-6(1).

(5)

(a) Each benefit shall be reasonable in relation to the premium charge.

(b) An insurer filing for approval of a rate higher than a prima facie rate shall comply with:

(i) Section 31A-22-807; and

(ii) Section R590-91-11.

(c) A demonstration that the rate is reasonable in relation to the benefit shall be included in the filing.

Notes

Utah Admin. Code R590-228-7

Adopted by Utah State Bulletin Number 2023-09, effective 4/21/2023