Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.01 - Standards for Credit Life and Credit Health Insurance › Section 31.13.01.15 - Prima Facie Premium Rates for Credit Health Insurance

Current through Register Vol. 51, No. 14, July 12, 2024
A. The premiums charged for credit health insurance policies having all policy provisions not less favorable to the insured debtor than those required by Regulation .17 of this chapter may not exceed, on policies of credit health insurance for which a single premium is charged in advance for the entire duration of the insurance and the indebtedness is repayable in equal installments, the amount shown in the table below for each $100 of the initial amount of insured indebtedness:
Number of Months in Which the Indebtedness Is Insured
Prima Facie Single Premium Rate Per $100 of Initial Amount of Insured Indebtedness
Benefits Not Retroactive Elimination Period
Retroactive Benefits Waiting Period
7 days
14 days
30 days
7 days
14 days
30 days
2
$0.50
-
-
$0.92
-
-
3
0.71
$0.43
$0.21
1.28
$0.92
$0.64
6
1.06
0.71
0.28
1.77
1.28
0.92
12
1.42
0.99
0.57
2.13
1.56
1.21
18
1.77
1.28
0.85
2.48
1.84
1.49
24
2.13
1.56
1.13
2.84
2.13
1.77
30
2.48
1.84
1.42
3.19
2.41
2.06
36
2.84
2.13
1.70
3.55
2.69
2.34
42
3.12
2.34
1.91
3.83
2.91
2.55
48
3.33
2.48
2.06
4.04
3.05
2.69
54
3.55
2.62
2.20
4.25
3.19
2.84
60
3.76
2.77
2.34
4.47
3.33
2.98
66
3.97
2.91
2.48
4.68
3.47
3.12
72
4.11
2.98
2.55
4.82
3.55
3.19
78
4.25
3.05
2.62
4.96
3.62
3.26
84
4.40
3.12
2.69
5.11
3.69
3.33
90
4.54
3.19
2.77
5.25
3.76
3.40
96
4.68
3.24
2.84
5.39
3.83
3.47
102
4.82
3.33
2.91
5.53
3.90
3.54
108
4.96
3.40
2.98
5.67
3.97
3.61
114
5.10
3.47
3.06
5.81
4.04
3.68
120
5.24
3.54
3.13
5.95
4.11
3.75
Prima facie premium rates for policies of credit health insurance under which the indebtedness is insured for periods other than those shown above but not in excess of 120 months, shall be determined by straight-line interpolation of the above rates with the results rounded to the nearest cent per $100 of initial amount of insured indebtedness. For purposes of this regulation, the term "initial amount of insured indebtedness" means the originally scheduled total of payments under the loan contract if the loan payments are covered in total, or means the proportionate amount of the originally scheduled total of payments if a pro rata portion of the indebtedness is covered.
B. On policies of credit health insurance with elimination or waiting periods of 7, 14, or 30 days, and with modes of premium payment other than single premium, the prima facie premium rates may not exceed rates which are actuarially consistent with those in §A of this regulation.
C. Other Types of Credit Health Insurance.
(1) With respect to critical period disability insurance and lump sum disability insurance, the premium rate charged by an insurer may not exceed a rate that is determined by adjusting the applicable prima facie premium rate set by §A of this regulation to an actuarially equivalent rate approved by the Commissioner.
(2) For all other types of credit health insurance, the prima facie premium rates shall be subject to approval by the Commissioner and may not exceed rates which are actuarially consistent with those specified in §§A and B of this regulation.