Section 760 IAC 1-5.1-2 - DefinitionsAuthority: IC 27-1-3-7; IC 27-8-4-12
Affected: IC 24-4.5-4-102; IC 27-1-23-1
Sec. 2.
(a) The following definitions apply throughout this rule: (1) "Affiliate" has the meaning set forth in IC 27-1-23-1.(2) "Closed-end credit" means a credit transaction that does not meet the definition of open-end credit.(3) "Compensation" means: (C) retrospective rate credits;(E) expense allowances or reimbursements;(G) furnishing of equipment, facilities, goods, or services; or(H) any other form of remuneration resulting directly from the sale of consumer credit insurance.(4) "Consumer credit insurance" is a general term used to refer to any or all of credit life insurance and credit accident and health insurance.(5) "Control" has the meaning set forth in IC 27-1-23-1.(6) "Evidence of individual insurability" means a statement furnished by the debtor, as a condition of insurance becoming effective, that relates specifically to the health status or to the health or medical history of the debtor.(7) "Gross debt" means the sum of the remaining payments owed to the creditor by the debtor.(8) "Identifiable insurance charge" means a charge for a type of consumer credit insurance that is made to debtors having such insurance and not made to debtors not having such insurance; it includes a charge for insurance that is disclosed in the credit or other instrument furnished to the debtor that sets out the financial elements of the credit transaction and any difference in the finance, interest, service, or other similar charge made to debtors who are in like circumstances except for the insured or noninsured status of the debtor.(9) "Loss ratio" means incurred claims divided by the sum of earned premiums and imputed interest earned on unearned premiums.(10) "Net debt" means the amount necessary to liquidate the remaining debt in a single lump sum payment, excluding all unearned interest and other unearned finance charges.(11) "Open-end credit" means credit extended by a creditor under an agreement in which the: (A) creditor reasonably contemplates repeated transactions;(B) creditor imposes a finance charge from time to time on an outstanding unpaid balance; and(C) amount of credit that may be extended to the debtor during the term of the agreement (up to any limit set by the creditor) is generally made available to the extent that any outstanding balance is repaid.(12) "Person" has the meaning set forth in IC 27-1-23-1.(13) "Preexisting condition" means any condition for which the insured debtor received medical advice, consultation, or treatment within six (6) months before the effective date of the coverage and from which the insured debtor becomes disabled within six (6) months after the effective date of this coverage.(b) The following definitions apply throughout section 10 of this rule:(1) "Experience" means earned premiums and incurred losses during the experience period.(2) "Experience period" means the most recent period of time for which earned premiums and incurred losses are reported, but not for a period longer than three (3) full years.(3) "Incurred losses" means total claims paid during the experience period, adjusted for the change in claim reserve. Department of Insurance; 760 IAC 1-5.1-2; filed Sep 9, 2002, 3:00 p.m.: 26 IR 20, eff Jan 1, 2003; readopted filed Nov 24, 2009, 9:35 a.m.: 20091223-IR-760090791RFAReadopted filed 11/20/2015, 9:25 a.m.: 20151216-IR-760150341RFAReadopted filed 11/15/2021, 8:32 a.m.: 20211215-IR-760210419RFA