Section 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;(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: (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 (c) A demonstration that the rate is reasonable in relation to the benefit shall be included in the filing.Utah Admin. Code R590-228-7
Adopted by Utah State Bulletin Number 2023-09, effective 4/21/2023