Notwithstanding Section 5 of these rules, the following rates
for credit life and credit disability insurance will be deemed to be acceptable
without the submission of substantiating data:
(a) For decreasing term credit life insurance
where the debt is repayable in substantially equal monthly installments, a
single premium of $. 50 per year, per $100.00 of initial
indebtedness.
(b) For decreasing
term credit life insurance, on two lives, on a single indebtedness, repayable
in substantially equal monthly installments, a single premium of $.80 per year,
per $100.00 of initial indebtedness.
(c) For credit life insurance based upon the
outstanding balance, a monthly premium of $.77 per $1,000.00 of the outstanding
balance of indebtedness.
(d) For
level term single premium credit life insurance, a premium of $.90, per $100.00
of the amount of insured indebtedness.
(e) Any insurer which owns, or controls, or
is owned or controlled by a creditor shall be exempt from the provisions of
Section 5 of these rules only if its rates are not greater than $.45 for
decreasing term life; $.73 for joint life; $.69 for monthly outstanding balance
and $.81 for level term.
(f) For
accidental death and dismemberment insurance, a single premium of $.05 per year
per $100.00 of initial insured indebtedness.
(g) For credit disability insurance, if
premiums are paid for the entire duration of the indebtedness:
|
Non-Retroactive Benefits
|
Retroactive Benefits
|
|
14-Day
|
30-Day
|
7-Day
|
14-Day
|
30-Day
|
|
12
|
$1.40
|
$.80
|
$3.00
|
$2.20
|
$1.70
|
|
24
|
2.20
|
1.60
|
4.00
|
3.00
|
2.50
|
|
36
|
3.00
|
2.40
|
5.00
|
3.80
|
3.30
|
|
48
|
3.50
|
2.90
|
5.70
|
4.30
|
3.80
|
|
60
|
3.90
|
3.30
|
6.30
|
4.70
|
4.20
|
|
72
|
4.30
|
3.70
|
6.90
|
5.10
|
4.60
|
|
84
|
4.70
|
4.10
|
7.50
|
5.50
|
5.00
|
|
96
|
5.10
|
4.50
|
8.10
|
5.90
|
5.40
|
|
108
|
5.50
|
4.90
|
8.70
|
6.30
|
5.80
|
|
120
|
5.90
|
5.30
|
9.30
|
6.70
|
6.20
|
Premiums payable on other than a single premium basis, or for
indebtedness of monthly durations not shown above, or for benefits on a basis
different from those illustrated above, shall be actuarially consistent with
the above rates. The above rates are premised upon a pre-existing condition
exclusion in the policy not to exceed twelve (12) months.
(h) An insurer which owns or controls, or is
owned or controlled by, a creditor, shall be exempt from the provisions of
Section 5 of these rules only if its rates for credit disability coverages are
at least ten (10) percent lower than those otherwise permitted by subsection
f.
(i) For the purposes of this
section, "control" means the possession, direct or indirect, of the power to
direct or cause the direction of the management or the policies of an insurer
or creditor whether through ownership or voting securities, by contract or
otherwise. Control shall be rebuttably presumed for purposes of stock ownership
if ten (10) percent or more of the voting securities of an insurer are
constructively owned by a creditor or vice versa. All rate filings shall
certify the status of the insurer in respect to its creditor
affiliations.
