California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.10 - Rates for Credit Property Insurance and Credit Unemployment Insurance › Article 3 - Regulation of Rates › Section 2670.6 - Prima Facie Rates and Permissible Loss Ratio for Benchmark Programs

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The prima facie rates and permissible loss ratio for the
					 benchmark programs set forth in Sections
					 2670.12 through Section
					 2670.20 of these regulations are
					 as follows:
(a) The prima facie rate
				  for benchmark number one, Dual Interest Credit Property Insurance on Open End
				  Plan of Indebtedness, is 2.9 cents per $100.00 of the monthly outstanding
				  balance. The permissible loss ratio is 67%.
(b) The prima facie rate for benchmark number
				  two, Dual Interest Credit Property Insurance on a Closed End Plan of
				  Indebtedness, is $1.60 per $100.00 of the unpaid balance due at the time
				  coverage attaches. The permissible loss ratio is 66%.
(c) The prima facie rate for benchmark number
				  three, Dual Interest Credit Property Insurance on a Closed End Loan Secured by
				  Personal Property, Invoiced Monthly, is 14 cents per $100.00 of the unpaid
				  balance due at the time coverage attaches. The permissible loss ratio is
				  74%.
(d) [Reserved.]
(e) [Reserved.]
(f) The prima facie rate for benchmark number
				  six, 30-Day Retroactive Credit Unemployment Insurance on an Open End Plan of
				  Indebtedness, and Paying Minimum Monthly Payment, is 4.1 cents per $100.00 of
				  the monthly outstanding balance. The permissible loss ratio is 64%.
(g) The prima facie rate for benchmark number
				  seven, 30-Day Non-Retroactive Credit Unemployment Insurance on an Open End Plan
				  of Indebtedness, and Paying Minimum Monthly Payment for Six Months, is 2.9
				  cents per $100.00 of the monthly outstanding balance. The permissible loss
				  ratio is 65%.
(h) The prima facie
				  rate for benchmark number eight, 30-Day Retroactive Credit Unemployment
				  Insurance on an Installment Loan Plan of Indebtedness, paying Monthly Payment
				  on Installment Loan Payments is $1.22 per $100.00 of the unpaid balance due at
				  the time coverage attaches. The permissible loss ratio is 70%.
(i) The prima facie rate for benchmark number
				  nine, 30-Day Non-Retroactive Credit Unemployment Insurance on an Open End Plan
				  of Indebtedness, and Paying Outstanding Balance Up To Policy Limit, is 7 cents
				  per $100.00 of the monthly outstanding balance. The permissible loss ratio is
				  66.
1. New
					 section filed 3-10-2003; operative 4-9-2003. Submitted to OAL for printing only
					 pursuant to Government Code section
					 11343.8 as
					 a regulation that establishes rates in accordance with Government Code section
					 11340.9(g)
					 (Register 2003, No. 11).
2. Change without regulatory effect
					 withdrawing and repealing section pursuant to settlement agreement in Consumer
					 Credit Insurance Association v. John Garamendi (California Superior Court No.
					 03CS00533) filed 5-27-2004 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2004, No. 22).
3. New section filed 4-28-2006;
					 operative 5-28-2006. Submitted to OAL for printing only pursuant to Government
					 Code section
					 11343.8 as
					 a regulation that establishes rates in accordance with Government Code section
					 11340.9(g)
					 (Register 2006, No. 17).
Note: Authority cited: Sections
						779.21,
						779.36,
						12921 and
						12926,
						Insurance Code; Credit Insurance General Agents Association v. Payne, 16 Cal.3d
						651 (1976); and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference:
						Section
						779.36,
						1861.01 and
						1861.05,
						Insurance Code.