Section 83-53-23 - Reasonable insurance rates; prohibition against additional charges(1) Credit life insurance rates filed with the commissioner shall be considered reasonable: (a) If the single premium rate for single life decreasing term credit life insurance does not exceed Eighty Cents (80¢) per annum per One Hundred Dollars ($100.00) of initial insured indebtedness;(b) If the single premium rate for single life level term credit life insurance does not exceed a single premium rate of One Dollar and Sixty Cents ($1.60) per annum per One Hundred Dollars ($100.00) of insured indebtedness;(c) If the monthly premium rate on single life credit life insurance on outstanding balances does not exceed a monthly premium of One Dollar and Thirty-three Cents ($1.33) per One Thousand Dollars ($1,000.00) of outstanding indebtedness;(d) If the single premium rate for joint life decreasing term credit life insurance does not exceed One Dollar and Thirty-nine Cents ($1.39) per annum per One Hundred Dollars ($100.00) of initial insured indebtedness;(e) If the single premium rate for joint life level term credit life insurance does not exceed Two Dollars and Eighty ($2.80) per annum per One Hundred Dollars ($100.00) of insured indebtedness;(f) If a monthly premium rate on joint life credit life insurance on outstanding balances does not exceed a monthly premium of Two Dollars and Thirty-four Cents ($2.34) per One Thousand Dollars ($1,000.00) of outstanding indebtedness;(g) If the amount is a minimum premium not exceeding Two Dollars ($2.00).(2) The foregoing life insurance rates are considered reasonable in relation to the benefits only if: (a) The credit life insurance coverage must contain a suicide exclusion provision wherein no benefit shall be paid in case of suicide within the first twelve (12) months after the effective date of the coverage.(b) Coverage is provided or offered to all debtors regardless of age, or to all debtors not older than the applicable age limit, which shall not be less than the attained age of sixty-five (65) years, if the limit applies to the age when the insurance attaches, or not less than attained the age of sixty-six (66) years if the limit applies to the age on the scheduled maturity date of the debt. Such aforementioned requirements provided by this subsection shall not prevent the usage of equitable underwriting standards to determine the eligibility of individual debtors as to a part or all of the coverage provided by the credit life insurance contract. Age and term limits, wherein the amount of insurance provided or offered varies by age, if used, must be clearly shown on the individual policies or group certificates.(3) The following credit disability insurance premium rates filed with the commissioner shall be considered reasonable in relation to the benefits if the single premium rate for credit disability insurance does not exceed the premium rates shown in the following schedule per One Hundred Dollars ($100.00) of initial insured indebtedness. NO. OF MONTHS | NONRETROACTIVE BENEFITS | RETROACTIVE BENEFITS |
IN WHICH INDEBTEDNESS IS PAYABLE | 14-DAY NONRETRO-ACTIVE | 30-DAY NONRETRO-ACTIVE | 14-DAY RETROACTIVE | 30-DAY RETRO-ACTIVE |
1-12 | 2.50 | 2.10 | 3.00 | 2.85 |
13-24 | 3.30 | 2.90 | 3.80 | 3.65 |
25-36 | 4.10 | 3.70 | 4.60 | 4.45 |
37-48 | 4.90 | 4.50 | 5.40 | 5.25 |
49-60 | 5.70 | 5.30 | 6.20 | 6.05 |
61-72 | 6.10 | 5.70 | 6.60 | 6.45 |
73-84 | 6.50 | 6.10 | 7.00 | 6.85 |
85-96 | 6.90 | 6.50 | 7.40 | 7.25 |
97-108 | 7.30 | 6.90 | 7.80 | 7.65 |
109-120 | 7.70 | 7.30 | 8.20 | 8.05 |
Premiums payable other than on a single premium basis or for benefits on a basis different than illustrated above shall be actuarially consistent with the above rates.
(4) The foregoing disability rates are considered to produce reasonable benefits in relation to premiums only if: (a) Coverage may be provided or offered to all debtors, who are gainfully employed on the effective date of insurance and who are not older than the applicable age limit, which shall not be less than the attained age of sixty-five (65) years, if the limit applies to the age when the insurance attaches, or not less than the attained age of sixty-six (66) years if the limit applies to the age on the scheduled maturity date of the debt. Such aforementioned requirements provided by this subsection shall not prevent the usage of equitable underwriting standards to determine the eligibility of individual debtors as to a part or all of the coverage provided by the disability insurance contract. Age and term limits, wherein the amount of insurance or term provided or offered varies by age, if used, must be clearly shown on the individual policies or group certificates;(b) Coverage does not contain any exclusions except disabilities resulting from intentional self-inflicted injury, pregnancy, foreign residence, flights in nonscheduled aircraft and preexisting illness, disease or physical condition for which the debtor either: (i) knew the existence of such illness, disease or condition on the effective date, or (ii) received medical advice, consultation or treatment during the twelve-month period immediately preceding the effective date of the debtor's coverage.(5) An insurer may receive approval of a different premium rate or schedule of premium rates to be used in connection with a particular policy form, or any type of coverage other than described herein, or a particular class or classes of risk of the debtors of a creditor, if the insurer demonstrates to the satisfaction of the commissioner that the mortality or morbidity experience which may reasonably be anticipated will develop a loss ratio in excess of fifty percent (50%).(6) No certificate fee, policy issue charge, or any other charge other than the premium herein shall be made.Laws, 1986, ch. 440, § 12, eff. 7/1/1987.