NC Gen Stat § 58-57-45 (2021)
2021 North Carolina General Statutes|Chapter 58 - Insurance|Article 57 - Regulation of Credit Insurance.|§ 58-57-45 - Credit accident and health insurance rate standards.

 58-57-45. Credit accident and health insurance rate standards.(a) The rate standards set forth below shall be applicable for contracts which contain a provision excluding or denying claim for disability resulting from preexisting illness, disease or physical condition, for which the debtor received medical advice, consultation, or treatment within the six-month period immediately preceding the effective date of the debtor's coverage and if said disability occurs within the six-month period immediately following such date, but contain no other provision which excludes or restricts liability in the event of disability caused in a certain specified manner, except that they may contain provisions excluding or restricting coverage in the event of normal pregnancy; intentionally self-inflicted injuries; sickness resulting from intoxication, addiction to alcohol or narcotics, or from the use thereof unless administered on the advice of a physician; flight in nonscheduled aircraft; war; military service; and may contain the same age restrictions as those mentioned for credit life insurance in G.S. 58-57-40. Provided, if the indebtedness is paid by renewal or refinancing prior to the scheduled maturity date, the effective date of the coverage with respect to any policy provision shall be deemed to be the first date on which the debtor became insured under the policy covering the original prior indebtedness that was renewed or refinanced, at least to the extent of the amount and term of the coverage outstanding at the time of renewal and refinancing of the debt.(b) A policy of credit accident and health insurance shall include a definition of "disability" providing that during the first 12 months of disability the insured shall be unable to perform the duties of his occupation at the time the disability occurred (or his previous occupation if the person is unemployed or retired at the time the disability occurs), and thereafter the duties of any occupation for which the insured is reasonably fitted by education, training, or experience.(c) Any policy to which the rates below apply may require the debtor to be gainfully employed on the effective date of the insurance. Provided, however, that unless the insured writes the name of his employer on the application and signs a statement that he is employed, there shall be no denial of claims grounded on the insured's failure to be employed on the effective date of the insurance.(d) If premiums are payable in one sum in advance for the entire duration of the indebtedness, for insurance with a preexisting exclusion as defined above, the following premiums are authorized:Single Premium Rates per $100.00 of InitialInsured IndebtednessNo. of Months   Nonretroactive Benefits  Retroactive Benefits  in which  Indebtedness  14-Day  30-Day  7-Day  14-Day  30-Day  is  Repayable    12  1.40  .95  2.60  2.10  1.40    24  1.90  1.40  3.50  2.85  1.90    36  2.40  1.90  4.35  3.65  2.40    48  2.85  2.40  5.25  4.40  2.85    60  3.35  2.85  6.10  5.20  3.35    72  3.85  3.35  5.95  3.85    84  4.30  3.85  6.70  4.30    96  4.80  4.30  7.50  4.80    108  5.25  4.80  8.25  5.25    120  5.75  5.25  9.00  5.75  For terms other than the above, premiums shall be prorated.(e) For policies for which monthly premiums are charged on a basis of the then-outstanding balances, a monthly premium per one thousand dollars ($1,000) of outstanding balances is authorized, based on the following formula:Opn  =  20  SPn  ______________________     n  +  1  where SPn = Single premium rate per one hundred dollars ($100.00) of initial indebtedness repayable in n equal monthly installments.  Opn  = Monthly outstanding balance premium rate per one thousand dollars ($1,000).    n   = Original repayment period, in months.  (e1) Notwithstanding the premium rates otherwise set forth in this section for credit accident and health insurance, the premium rates for such insurance written in connection with direct loans with contractual commitments of more than 10 years' duration shall be filed with and approved by the Commissioner. Such premium rates shall exhibit a reasonable relationship to the benefits provided.(f) Premium rate standards for other benefit plans and for indebtedness repayable in installments other than as indicated above shall be actuarially consistent with the above rate standards.(g) In addition to the premium rate authorized, a charge may also be made for a nonrefundable origination fee per credit accident and health insurance transaction as set forth below:Insured Indebtedness  Fee Permitted  less than $250.00  none  $250.00 or more but  $1.00    less than $500.00  $500.00 or more  $3.00  No third or subsequent origination fee may be charged in connection with a third or subsequent refinancing within any twelve-month period.  (h) The premium rates for joint accident and health coverage shall not exceed one and two-thirds (1 2/3) times the permitted single accident and health rate. (1975, c. 660, s. 1; 1981, c. 759, ss. 2, 4-6, 9; 1987, c. 826, ss. 6, 7, 14; 1993, c. 226, s. 8.)