Rates: Credit disability insurance.
1. The maximum allowable rates for credit disability insurance are as follows:
Term of Loan Prospective Retroactive
in Months Benefits Benefits
14-Day 30-Day 7-Day 14-Day 30-Day
1 to 12 $1.40 $0.80 $3.00 $2.20 $1.70
13 to 24 2.20 1.60 4.00 3.00 2.50
25 to 36 3.00 2.40 5.00 3.80 3.30
37 to 48 3.50 2.90 6.00 4.30 3.80
49 to 60 3.90 3.30 7.00 4.70 4.20
61 to 72 4.30 3.70 8.00 5.10 4.60
73 to 84 4.70 4.10 9.00 5.50 5.00
85 to 96 5.10 4.50 10.00 5.90 5.40
97 to 108 5.50 4.90 11.00 6.30 5.80
109 to 120 5.90 5.30 12.00 6.70 6.20
121 to 132 6.30 5.70 13.00 7.10 6.60
133 to 144 6.70 6.10 14.00 7.50 7.00
145 to 156 7.10 6.50 15.00 7.90 7.40
157 to 168 7.50 6.90 16.00 8.30 7.90
169 to 180 7.90 7.10 17.00 8.80 8.30
These rates are for $100 of insurance per annum.
Term of Loan Prospective Retroactive
in Months Benefits Benefits
14-Day 30-Day 7-Day 14-Day 30-Day
1 to 12 $2.15 $1.23 $4.62 $3.38 $2.62
13 to 24 1.76 1.28 3.20 2.40 2.00
25 to 36 1.62 1.30 2.70 2.05 1.78
37 to 48 1.43 1.18 2.45 1.76 1.55
49 to 60 1.28 1.08 2.30 1.54 1.38
61 to 72 1.18 1.01 2.19 1.40 1.26
73 to 84 1.11 0.96 2.12 1.29 1.18
85 to 96 1.05 0.93 2.06 1.22 1.11
97 to 108 1.01 0.90 2.02 1.16 1.06
109 to 120 0.98 0.88 1.98 1.11 1.02
These rates are for $l,000 of outstanding monthly balance of the insured indebtedness.
2. The Commissioner may approve the use by an insurer of a single rate, without regard to the term of the loan, applied to all loans on the basis of outstanding balance, if he finds that the single rate is actuarially consistent with the rates specified in subsection 1.
3. The rates in this section are acceptable only if the coverage issued in conjunction with those rates contains no exception for a preexisting condition except for a condition that:
(a) Requires medical diagnosis or treatment within the 6 months immediately preceding the effective date of coverage; and
(b) Causes disability that begins within 6 months after the effective date of coverage.
4. Any policy of insurance using the rates set forth in this section may exclude or restrict coverage for total disability resulting from intentionally self-inflicted injuries, foreign travel or residency, flight in nonscheduled aircraft, war or military service.
5. As used in this section:
(a) “Prospective” refers to a method of paying benefits for credit disability insurance in which the benefits are payable only after the person has been disabled a minimum number of days as designated in the contract of insurance.
(b) “Retroactive” refers to a method of paying benefits for credit disability insurance in which the benefits are paid from the date the disability occurs but only after the person has been disabled a minimum number of days as designated in the contract.
Last modified: February 27, 2006