reglab/statecodes huggingface dataset:
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 31.13.01.18 - Guidelines for Increased Rates

Current through Register Vol. 51, No. 14, July 12, 2024
A. Applications to the Commissioner for higher than prima facie premium rates shall be accompanied by credible statistics. Approval of applications for increased rates will depend on whether the requested rates are not greater than rates based on the standards in this regulation.
B. Decreasing Term Credit Life Insurance. On policies of decreasing term credit life insurance for which a single premium is charged in advance providing coverage for the outstanding amount of insured indebtedness in connection with a loan repayable in 12 equal monthly installments, when the prima facie loss ratio exceeds 58 percent, the rate shall be determined by the formula: ((Prima Facie Loss Ratio - .55) x 1.41 + 1) x Prima Facie Rate. For terms other than 12 months under single premium decreasing term credit life policies, and for other modes of premium payment under decreasing term credit life insurance, this formula shall be the basis of determining actuarially consistent rates.
C. Level Term Credit Life Insurance. On policies of level term credit life insurance for which a single premium is charged in advance providing a level amount of life insurance coverage for 12 months, when the prima facie loss ratio exceeds 58 percent, the rate shall be determined by the formula: ((Prima Facie Loss Ratio - 0.55) x 1.41 + 1) x Prima Facie Rate. For terms other than 12 months under single premium level term credit life policies and for other modes of premium payment under level term credit life insurance, this formula shall be the basis of determining actuarially consistent rates.
D. Outstanding Balance Credit Life Insurance. On policies of outstanding balance credit life insurance for which an insurance premium is charged each month based on the insured loan amount then outstanding, where the prima facie loss ratio exceeds 58 percent, the rate shall be determined by the formula: ((Prima Facie Loss Ratio - 0.55) x 1.41 + 1) x Prima Facie Rate.
E. Credit Health Insurance. On policies of credit health insurance for which the prima facie loss ratio exceeds 58 percent, the rate shall be determined by the formula: ((Prima Facie Loss Ratio - 0.55) x 1.41 + 1) x Prima Facie Rate.
F. Rounding Rate Calculations. Premium rates for credit life insurance or credit health insurance determined under this regulation shall be rounded to:
(1) Two decimal places per hundred dollars of initial amount of single premium insurance; and
(2) Three decimal places per thousand dollars of monthly outstanding balance insurance.
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 31.13.01.19 - Refunds

Current through Register Vol. 51, No. 14, July 12, 2024
A. In event of termination of the insurance before the scheduled maturity date of the indebtedness, other than by performance of the insurance contract, the insurer shall promptly refund or credit to the person entitled to it the appropriate portion of any premiums paid for the insurance.
B. In the case of decreasing term credit life insurance or of credit health insurance on which premiums are charged to the debtor other than as a single premium payable in advance, or in the case of level term credit life insurance, the amount of the refund or credit shall be not less than the pro rata gross unearned premium.
C. In the case of decreasing credit life insurance on which premiums are charged to the debtor in a single sum payable in advance, the amount of the refund or credit shall be not less than the amount computed by the "sum of the digits" method commonly known as the Rule of 78.
D. In the case of credit health insurance on which premiums are charged to the debtor in a single sum payable in advance, the amount of the refund or credit shall be not less than the amount computed by the "sum of the digits" method, commonly known as the Rule of 78.
E. At the option of the insurer, refunds under C and D of this regulation may be calculated on a daily or on a monthly basis, as may be elected in the filing made by the insurer. Refunds may be calculated on an approximate daily basis by interpolating pro rata between the values at the beginning and at the end of the month. For this purpose, the insurer shall assume that every month has 30 days. If refunds are calculated on a monthly basis, a charge may not be made for a period less than 15 days elapsing since the last monthly installment due date, but if the period is 15 days or more, a charge may be made for the full month.
F. A premium refund need not be made under §A of this regulation if the sum of the refunds on all insurance issued to the debtor by an insurer in connection with the loan would be less than $1.
G. If a refund or credit is due the debtor in accordance with Insurance Article, §
									13-107(b), Annotated Code of Maryland, or in accordance with Insurance Article, §
									13-112(b), Annotated Code of Maryland, the amount of refund or credit shall be not less than the amount paid by the debtor less the amount payable under any substituted or delayed coverage issued to the debtor.
H. In the event of the death of a debtor who is covered for both credit life and credit health insurance, the credit health insurance may not be deemed to have terminated by the performance of the insurance contract by reason of the debtor's death. In this case, the insurer shall make the appropriate refund for the health insurance coverage which terminated at the date of death.
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 31.13.01.20 - Commission to Agents and Creditors

Current through Register Vol. 51, No. 14, July 12, 2024
A. Maximum Commission.
(1) On all loans originating in Maryland, an insurer may not directly or indirectly pay, allow, or offer to pay any form of commission, as defined in Regulation .04B(6) of this chapter, in excess of the limits stated in these regulations on a form of credit life or credit health insurance regardless of whether the payment is made to a licensed agent, a creditor, or an affiliate, corporate parent, subsidiary, associate, director, officer, active or retired employee, or other representative of the creditor or the licensed insurance agent.
(2) The maximum commission payable to all payees on each policy of credit life or credit health insurance may not exceed a total of 36 percent of prima facie premium rates.
(3) Commission paid to a creditor, or an affiliate, corporate parent, subsidiary, associate, director, officer, active or retired employee, or other representative of the creditor, regardless of whether the payee is a licensed agent, may not exceed 32 percent of prima facie premium rates.
(4) Payment as described in §A(3) of this regulation will not preclude payment of commission to a licensed agent not listed in §A(3) of this regulation, provided the total commission paid under §A(3) of this regulation and under this subsection does not exceed the maximum rate stated in §A(2) of this regulation.
(5) A licensed agent proposing to pay commission to any payee listed in §A(3) of this regulation shall first inquire of the insurer whether any commission is being paid by the insurer to that payee on the same business. The agent may not pay that payee an amount which, when added to the amount paid by the insurer for the same business, would cause the payment to exceed the maximum rate stated in §A(3) of this regulation. The insurer shall cooperate with the agent in providing the information called for by this subsection.
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 31.13.01.21 - Reinsurance Treaties

Current through Register Vol. 51, No. 14, July 12, 2024
A. To permit the Commissioner to enforce the provisions of Regulation .20 of this chapter with respect to that portion of commission defined by Regulation .04B(6)(n) of this chapter and to permit the Commissioner to ascertain that there are no violations of Insurance Article, Title 27, Annotated Code of Maryland, and other applicable sections of Insurance Article, Annotated Code of Maryland, a contract of reinsurance of credit life or credit health insurance on loans originating in Maryland may not be entered into, or continued, after the effective date of these regulations unless approved by the Commissioner and unless the reinsurer is licensed in Maryland, or qualifies under Insurance Article, §
									13-116, Annotated Code of Maryland, or is an accredited reinsurer.
B. A person proposing to enter into a reinsurance treaty as described in this regulation or a person proposing to continue a treaty entered into before the effective date of this chapter shall submit the treaty to the Commissioner for his approval.
Agency Note: The Commissioner will accept submission of existing of proposed reinsurance treaties for review before the effective date of these regulations.
C. If the Commissioner does not approve or disapprove the proposed or existing reinsurance treaty within 90 days after the date it is filed with him, the treaty shall be deemed to be approved.
D. The Commissioner may withdraw approval of a reinsurance treaty after a hearing held not less than 20 days after written notice to the insurer and the reinsurer.
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 31.13.01.22 - Prohibited Transactions

Current through Register Vol. 51, No. 14, July 12, 2024
A. A person may not solicit or sell a group or individual policy of credit life or credit health insurance unless the person is then licensed as an agent in accordance with Insurance Article, Title 10, Subtitle 1, Annotated Code of Maryland. A person possessing a restricted license in accordance with Insurance Article, §
									10-105(e)(2)(i), Annotated Code of Maryland, shall be deemed appropriately licensed for this purpose.
B. Enroller.
(1) An enroller may not receive any form of commission, compensation, remuneration, or other benefit based on the enrollee's activity in enrolling persons in group policies of credit life or credit health insurance.
(2) An enroller who is not also licensed as an agent may not engage in solicitation or selling or assist in solicitation or selling of an individual policy of credit life or credit health insurance.
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 31.13.01.23 - Combinations of Coverages

Current through Register Vol. 51, No. 14, July 12, 2024
A. In General.
(1) If an individual policy of credit life insurance or a certificate of group credit life insurance is used to provide more than one type of coverage, the policy or certificate shall include, for each type of coverage, a box that is:
(a) Prominently placed in the schedule of benefits; and
(b) Clearly and prominently labeled with the name of the type of coverage.
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 31.13.01.24 - Notice to Debtors

Current through Register Vol. 51, No. 14, July 12, 2024
A. If a debtor is covered by a group credit life or credit health insurance policy providing for payment of premiums to the insurer on a monthly outstanding balance basis, the policy shall provide that in the event of termination of the policy for any reason the insured debtor shall be given written notice of termination, and that coverage will continue for at least 31 days from the date of notice, except when replacement of the coverage by the same or another insurer in the same or greater amount takes place without interruption of coverage and a new certificate reflecting the replacement coverage is delivered to the insured debtor. The notice of termination required by this section shall be given by the insurer unless the insurer is unable to identify the debtors, in which case it shall be given by the creditor. There shall be a prominent notice printed or stamped close to the schedule of benefits in the certificate form that the insurance coverage will terminate if the group policy terminates. An insurer also may include notice of additional events that would lead to termination of insurance coverage.
B. If a credit life insurance policy is issued under which the benefit upon death may not completely extinguish the total principal indebtedness even if the loan account and the insurance premiums are paid on a current basis, or if a credit health insurance policy is so written that in event of disability the monthly benefit may not cover payment of the entire scheduled monthly loan installment or the total benefit may not cover payment of all of the unpaid scheduled installments under the loan, even if the loan account and the insurance premiums are paid on a current basis, then there shall be a notice to this effect in the individual policy or in certificates of insurance issued under a group policy. This notice shall be prominently printed or stamped close to the schedule of benefits in the policy and in the certificate form.
C. If a policy or certificate of credit life or credit health insurance contains any age limitations, there must be printed in, or close to, the schedule of benefits, language clearly calling attention to the limitation.
D. If a policy or certificate of credit life or credit health insurance insuring open lines of credit requires evidence of insurability for advances of credit, there shall be printed in, or close to, the schedule of benefits, language clearly calling attention to the evidence of insurability requirement.
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 31.13.01.25 - Benefits

Current through Register Vol. 51, No. 14, July 12, 2024
A. When a debtor has filed in accordance with the policy provisions a claim for benefits for which the insurer is liable under a credit health insurance policy, the insurer shall pay any late charges accruing on the amount payable under the claim after the date the claim has been filed.
B. The amount of the claim payable under a credit life insurance policy shall be determined as of the date of death of the debtor or in the case of benefits described in Regulation .14 of this chapter, as of the date of the loss.
C. For purposes of these regulations a claim shall be deemed to be filed if it is transmitted to the creditor, to the insurer, or to an agent of the insurer.
D. The benefit at death under a policy of net payoff credit life insurance shall include earned but unpaid interest to date of death and any past-due installments of principal and late charges.
E. An amount due under a credit life or credit health insurance policy in excess of the amount due to the creditor shall be paid by the insurer directly to the debtor, the designated second beneficiary, or the estate of the debtor, whichever is entitled to the payment. If the insurer does not have the address of the person entitled to the excess amount, the insurer shall send a check payable to that person to the creditor for transmittal.
F. Claims shall be paid either by a check of the insurer or by a draft drawn upon the insurer. The creditor may not be authorized to settle or adjust claims or to act as a claim representative for the insurer.
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 31.13.01.26 - Review of Credit Operations

Current through Register Vol. 51, No. 14, July 12, 2024
A. Every insurer transacting credit life or credit health insurance in Maryland shall conduct a review of each of its creditor accounts with respect to the credit life and credit health insurance business of the creditor to assure compliance with the insurance laws and regulations of Maryland. Unless a satisfactory review has been made within 2 years before the effective date of these regulations, the first review shall be made not later than 15 months after the effective date of these regulations or of the date of the initial credit life or credit health insurance transaction between the creditor and the insurer, whichever is later. After that, a review shall be made not later than 36 months following the last preceding review.
B. The review shall include but need not be limited to a determination that:
(1) The proper premium charges to debtors are made by the creditor and remitted in a timely manner to the insurer;
(2) The proper refunds are being accurately calculated and promptly made by the creditor;
(3) All claims are being filed promptly and properly handled;
(4) Amounts of insurance payable on death in excess of the amounts necessary to extinguish the indebtedness are properly calculated and reported to the insurer in proofs of loss;
(5) The creditor is promptly and fairly processing complaints concerning its credit insurance operations and is maintaining proper procedures for and records of the complaints processed.
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 31.13.01.27 - Effective Date

Current through Register Vol. 51, No. 14, July 12, 2024
This chapter shall take effect September 1, 1980. An individual policy or group policy or group certificate of credit life or credit health insurance not in conformity with this chapter may not be issued or continued to be used in connection with any loan made on or after the effective date of this chapter. A premium in excess of that permitted by these regulations may not be charged for credit life or credit health insurance, and a commission or other form of benefit may not be paid to agents or creditors, in excess of the premium and commission rates permitted under this chapter for credit life or credit health insurance which is issued in connection with any loan made on or after the effective date of this chapter.
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 31.13.01.28 - Clerical Errors

Current through Register Vol. 51, No. 14, July 12, 2024
A. Excess Insurance.
(1) If a policy of credit life or credit health insurance limits the life or health insurance benefits to stated policy maximums, the policy and certificates of insurance issued under a group policy shall provide that if the insured has been charged premiums for insurance in excess of the stated maximums the insurer may terminate the excess insurance and refund all premiums paid by the debtor for the excess insurance.
(2) The notice of termination of the excess insurance shall state that the premium paid by the debtor for the excess coverage shall be refunded to the person entitled to it.
(3) A single premium credit life or credit health insurance policy and certificate shall further provide that excess insurance shall remain in force if the insurer does not terminate the excess insurance within 60 days after the effective date of coverage or if the debtor suffers a covered loss within the 60-day period but before notification by the insurer of termination of the excess coverage.
(4) An outstanding balance credit life or credit health insurance policy and certificate shall further provide that the excess insurance shall be in force for the period for which a premium was charged unless the excess insurance is cancelled before the occurrence of a loss.
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 31.13.01.29 - Change of Insurers - Reporting Requirements - Coverage and Rates

Current through Register Vol. 51, No. 14, July 12, 2024
A. Insurers That Cease to Offer Credit Insurance. Within 90 days after an insurer ceases to offer credit insurance through a case, the insurer shall notify the Commissioner of:
(1) The name of the creditor;
(2) Each coverage no longer offered;
(3) he date on which the coverage ceased to be offered; and
(4) The current approved premium rate applicable to each coverage no longer offered.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.02 - Credit Life and Credit Health Reinsurance › Section 31.13.02.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
In connection with credit life and credit health insurance written in Maryland by an authorized insurer, Insurance Article, §
									13-116, Annotated Code of Maryland, permits a fronting agreement between the authorized insurer writing the business and an otherwise unauthorized insurer if the unauthorized insurer maintains certain deposits with the Commissioner. The purpose of these regulations is to establish rules with regard to the deposits which are to be held by the Commissioner for the protection of affected authorized insurers, policyholders, certificate holders, and creditors in Maryland.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.02 - Credit Life and Credit Health Reinsurance › Section 31.13.02.02 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Acceptable securities" means any one of or a combination of the following, provided the securities are not in default as to payment of principal or interest at the time of deposit with the Commissioner:
(a) Cash;
(b) General obligations of, or obligations guaranteed by, the federal government;
(c) General obligations of, or obligations guaranteed by this State or any of its political subdivisions; or
(d) General obligations of the District of Columbia or of any state of the United States.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.02 - Credit Life and Credit Health Reinsurance › Section 31.13.02.03 - Deposit

Current through Register Vol. 51, No. 14, July 12, 2024
A. Securities on Deposit with the Commissioner.
(1) In order to qualify as an insurer in accordance with Insurance Article, §
										13-116, Annotated Code of Maryland, the insurer at all times shall keep on deposit with the Commissioner acceptable securities with a total value at least equal to the sum of §A(1)(a) and (b) of this regulation:
(a) $500,000 reduced by the amount of the insurer's actual capital; and
(b) $750,000 at the time of initial qualification and, after that, $500,000, in either case reduced by the amount of the insurer's actual surplus.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.02 - Credit Life and Credit Health Reinsurance › Section 31.13.02.05 - Letter of Credit

Current through Register Vol. 51, No. 14, July 12, 2024
A. To the extent that the securities on deposit with the Commissioner and the other assets of the fronting reinsurer are insufficient to qualify in accordance with Insurance Article, §
									13-116, Annotated Code of Maryland, and these regulations, the insurer may provide the Commissioner with an irrevocable letter of credit in an amount at least equal to the shortfall.
B. In order to be acceptable for the purpose of this regulation, the letter of credit shall be issued by a bank located in Maryland, which has deposits insured by the Federal Deposit Insurance Corporation, and which is not affiliated with the insurer.
C. The letter of credit shall be automatically renewable from time to time, and may only be terminated by the issuing bank upon 30 days' written notice sent to the Commissioner by certified or registered mail.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
The purpose of this chapter is to promote the public welfare by regulating credit involuntary unemployment benefit insurance and to establish standards for premium rates.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.02 - Regulation of Commissions

Current through Register Vol. 51, No. 14, July 12, 2024
The Commissioner finds it necessary to establish maximum rates of commission that may be paid to insurance producers and maximum benefits payable to creditor group policyholders in the form of dividends, retrospective rate credits, or any other form, to ensure that credit involuntary unemployment benefit insurance operations of insurers do not:
A. Result in rates that are excessive in relation to benefits;
B. Endanger the solvency of insurers rendering their transaction of business hazardous to policyholders or the public; and
C. Adversely affect other classes of business of insurers.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.03 - Applicability

Current through Register Vol. 51, No. 14, July 12, 2024
This chapter applies to all authorized insurers delivering, issuing for delivery, or proposing to deliver or issue for delivery, credit involuntary unemployment benefit insurance in Maryland under individual policies, group policies, or group certificates that are required to be filed under Insurance Article, §
									13-110, Annotated Code of Maryland.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.05 - Loss Ratio

Current through Register Vol. 51, No. 14, July 12, 2024
A. Benefits for policies issued under these regulations shall be deemed reasonable in relation to premiums if claims incurred under the policies result in, or may reasonably be expected to result in, a loss ratio of not less than 55 percent when premiums do not exceed prima facie premium rates.
B. When the prima facie loss ratio exceeds 58 percent, the premiums shall be determined in accordance with the methods of Regulation .12 of this chapter.
C. Rate Reduction.
(1) When the prima facie loss ratio is less than 52 percent:
(a) A reduced premium rate shall be used that is calculated by dividing the prima facie loss ratio by 0.55 and multiplying the result by the prima facie premium rate; but
(b) Except as provided in §C(2) of this regulation, the reduced premium rate may not be less than 40 percent of the prima facie premium rate.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.06 - Statistics and Reporting Forms

Current through Register Vol. 51, No. 14, July 12, 2024
A. General Requirements. To permit the Commissioner to review the basis of prima facie premium rates and the basis of premium rates being charged on the case method, each insurer writing credit involuntary unemployment benefit insurance shall:
(1) Maintain statistics relating to the insurer's Maryland business; and
(2) File the statistics with the Commissioner in the form required by the Commissioner.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.07 - Rate Changes and Creditor-Paid Insurance

Current through Register Vol. 51, No. 14, July 12, 2024
A. Premium rates under a group policy of credit involuntary unemployment benefit insurance may not be increased more than once during the first policy year, and a subsequent increased rate may not be charged within 12 months of any prior change in rates.
B. Monthly Premium Insurance.
(1) In a policy of monthly premium insurance, a change in rates may not be made effective until 31 days after all existing debtors in the group have been notified of any increased charge that they will be required to pay as a result of the change in rates.
(2) The notice required by §B(1) of this regulation shall be deemed to be satisfied if the insurer:
(a) Notifies the creditor of the increased charge;
(b) Provides the creditor with the necessary forms to be mailed by the creditor to the debtors advising them of the increased charge; and
(c) Verifies that the creditor has mailed the notices to the debtors.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.08 - Premium Rates by Case Method

Current through Register Vol. 51, No. 14, July 12, 2024
A. Case Comprising Two or More Accounts.
(1) If an insurer has combined two or more accounts to establish a case, it may not add additional accounts or remove accounts from that case except with the permission of the Commissioner and under conditions that the Commissioner may specify.
(2) When submitting an experience report for a case comprising two or more accounts, the insurer shall include a list of the names of each account included in the case.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.09 - General Premium Rate Standards and Increased Rates

Current through Register Vol. 51, No. 14, July 12, 2024
A. General.
(1) With respect to all premium rates not eligible for filing in accordance with the case method, the Commissioner shall accept as meeting the standards of Insurance Article, §
										13-110(b)(1), Annotated Code of Maryland, those premium rate filings that do not exceed prima facie premium rates stated in Regulation .10 of this chapter for the several categories of insurance described in Regulation .10 of this chapter.
(2) The prima facie premium rates in Regulation .10 of this chapter are based on the assumption that a policy fee, policy issue fee, certificate fee, or other additional charge will not be made.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.10 - Prima Facie Premium Rates for Credit Involuntary Unemployment Insurance

Current through Register Vol. 51, No. 14, July 12, 2024
A. Prima Facie Single Premium Rates. The premiums charged for credit involuntary unemployment insurance policies having all policy provisions not less favorable to the insured debtor than those required by Regulation .l1 of this chapter may not exceed, on policies of credit involuntary unemployment 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 $10 of the monthly benefit insured:
(1) Prima Facie Single Premium Rates per $10 of Monthly Benefit Payable
Number of Months in Which Indebtedness is Repayable
Benefits Retroactive 30 Day Waiting Period Maximum Number of Benefits Per Occurrence
6
9
12
18
24
9
$ 1.276
$
$
$
$
12
1.816
2.185
24
3.926
4.862
5.466
6.216
36
5.964
7.447
8.443
9.687
10.584
48
7.933
9.943
11.318
13.039
14.307
60
9.833
12.353
14.095
16.276
17.902
72
11.668
14.680
16.776
19.401
21.373
84
13.441
16.928
19.364
22.420
24.725
96
15.152
19.098
21.864
25.334
27.962
108
16.805
21.194
24.279
28.149
31.088
120
18.401
23.218
26.610
30.864
34.107
(2) Prima Facie Single Premium Rates per $10 of Monthly Benefit Payable
Number of Months in Which Indebtedness Is Repayable
Benefits not Retroactive 30 Day Elimination Period Maximum Number of Benefits per Occurrence
6
9
12
18
24
9
$ 0.950
$
$
$
$
12
1.352
1.566
24
2.923
3.485
3.834
4.303
36
4.441
5.337
5.923
6.706
7.311
48
5.906
7.126
7.940
9.027
9.882
60
7.321
8.854
9.887
11.268
12.366
72
8.688
10.522
11.768
13.432
14.763
84
10.008
12.113
13.584
15.521
17.079
96
11.282
13.688
15.338
17.539
19.315
108
12.512
15.191
17.032
19.488
21.474
120
13.700
16.641
18.667
21.369
23.559
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.11 - Underwriting Requirements for Insurance Prima Facie Premium Rates

Current through Register Vol. 51, No. 14, July 12, 2024
A. The prima facie premium rates in Regulation .10 of this chapter assume that contracts providing credit involuntary unemployment benefit insurance do not require evidence of individual insurability from any eligible debtor electing to purchase coverage except:
(1) A requirement that the debtor has been employed full-time for not more than 30 days before the effective date of coverage;
(2) A requirement that the debtor has not received notice of impending termination or layoff within 60 days before the effective date of coverage; and
(3) That there are no age restrictions, except that coverage may be restricted based on age if:
(a) There is credit health insurance coverage or credit life insurance coverage on the same debt;
(b) The credit health insurance coverage or credit life insurance coverage is subject to an age restriction; and
(c) The credit involuntary unemployment benefit insurance is:
(i) Subject to the same age restriction that applies to the credit health insurance coverage; or
(ii) If no age restriction applies to the credit health insurance, subject to the same age restriction that applies to the credit life insurance.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.12 - Guidelines for Increased Rates

Current through Register Vol. 51, No. 14, July 12, 2024
A. Applications to the Commissioner for higher than prima facie premium rates shall be accompanied and supported by credible statistics.
B. Approval of applications for increased rates shall depend on whether the requested rates are not greater than rates based on the standards in this chapter.
C. On policies of credit involuntary unemployment benefit insurance for which the prima facie loss ratio exceeds 58 percent, the rate shall be determined by the formula:
((Prima Facie Loss Ratio - 0.55) (1.41) + 1)(Prima Facie Rate).
D. Premium rates for credit involuntary unemployment benefit insurance determined under this regulation shall be rounded to three decimal places per $10 of monthly benefit payable.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.13 - Remittance of Premiums to Insurer

Current through Register Vol. 51, No. 14, July 12, 2024
A. Premiums shall be remitted to the insurer within 60 days of their due dates.
B. For purposes of this chapter, the deposit of premiums to any demand deposit account with the creditor or affiliate and the continued retention of the premiums in the deposit account for more than 60 days may not be deemed remittance to the insurer.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.14 - Refunds

Current through Register Vol. 51, No. 14, July 12, 2024
A. In event of termination of the insurance before the scheduled maturity date of the indebtedness, the insurer promptly shall refund or credit to the person entitled to it the appropriate portion of any premiums paid for the insurance.
B. In the case of monthly premium credit involuntary unemployment benefit insurance, the amount of the refund or credit may not be less than the pro rata gross unearned premium.
C. Single Premium Credit Insurance.
(1) In the case of single premium credit involuntary unemployment benefit insurance, the amount of the refund or credit may not be less than the refund computed by the sum of the digits method commonly known as the Rule of 78.
(2) The insurer may not reduce the amount of the refund based on the amounts of benefit paid.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.15 - Commission to Insurance Producers and Creditors

Current through Register Vol. 51, No. 14, July 12, 2024
A. On all loans originating in Maryland, an insurer may not directly or indirectly pay, allow, or offer to pay any form of commission, as defined in Regulation .04B(7) of this chapter, in excess of the limits stated in this chapter on a form of credit involuntary unemployment benefit insurance, regardless of whether the payment is made to a licensed insurance producer, a creditor, or an affiliate, corporate parent, subsidiary, associate, director, officer, active or retired employee, or other representative of the creditor or the licensed insurance producer.
B. The maximum commission payable to all payees on each policy of credit involuntary unemployment benefit insurance may not exceed a total of 36 percent of prima facie premium rates.
C. A commission paid to a creditor, or an affiliate, corporate parent, subsidiary, associate, director, officer, active or retired employee, or other representative of the creditor, regardless of whether the payee is a licensed insurance producer, may not exceed 32 percent of prima facie premium rates.
D. Payment as described in §C of this regulation does not preclude payment of commission to a licensed insurance producer not listed in §C of this regulation, if the total commission paid under §C of this regulation and under this section does not exceed the maximum rate allowed in §B of this regulation.
E. Payment of Commission by Insurance Producer.
(1) A licensed insurance producer proposing to pay commission to any payee listed in §C of this regulation shall first inquire of the insurer whether any commission is being paid by the insurer to that payee on the same business.
(2) The insurance producer may not pay that payee an amount which, if added to the amount paid by the insurer for the same business, would cause the payment to exceed the maximum rate allowed in §C of this regulation.
(3) The insurer shall cooperate with the insurance producer in providing the information called for by this section.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.16 - Reinsurance Treaties

Current through Register Vol. 51, No. 14, July 12, 2024
A. To permit the Commissioner to enforce the provisions of Regulation .15 of this chapter with respect to that portion of commission defined by Regulation .04B(7)(a)(xiv) of this chapter and to permit the Commissioner to ascertain that there are no violations of Insurance Article, Title 27, Annotated Code of Maryland, and other applicable sections of Insurance Article, Annotated Code of Maryland, a contract of reinsurance of credit involuntary unemployment benefit insurance on loans originating in Maryland may not be entered into, or continued, after the effective date of this chapter unless approved by the Commissioner and unless the reinsurer is licensed in Maryland, qualifies under Insurance Article, §
									13-116, Annotated Code of Maryland, or is an accredited reinsurer.
B. A person proposing to enter into a reinsurance treaty as described in this regulation or a person proposing to continue a treaty entered into before the effective date of this chapter shall submit the treaty to the Commissioner for the Commissioner's approval.
C. If the Commissioner does not approve or disapprove the proposed or existing reinsurance treaty within 90 days after the date it is filed with the Commissioner, the treaty shall be deemed to be approved.
D. The Commissioner may withdraw approval of a reinsurance treaty after a hearing held not less than 20 days after written notice to the insurer and the reinsurer.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.17 - Prohibited Transactions

Current through Register Vol. 51, No. 14, July 12, 2024
A. A person may not solicit, sell, or negotiate a group or individual policy of credit involuntary unemployment benefit insurance unless the person is licensed as an insurance producer in accordance with Insurance Article, Title 10, Subtitle 1, Annotated Code of Maryland.
B. Enroller.
(1) An enroller may not receive any form of commission, compensation, remuneration, or other benefit based on the enroller's activity in enrolling persons in group policies of credit involuntary unemployment benefit insurance.
(2) An enroller who is not also licensed as an insurance producer may not engage in soliciting, selling, or negotiating, or assist in soliciting, selling, or negotiating, an individual policy of credit involuntary unemployment benefit insurance.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.18 - Combinations of Coverages

Current through Register Vol. 51, No. 14, July 12, 2024
If an individual policy form or group policy form of credit involuntary unemployment benefit insurance or a certificate form of group credit involuntary unemployment benefit insurance is used to provide both single and joint coverage, the coverage in effect shall clearly and prominently be indicated in the schedule of benefits.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.19 - Notice to Debtors

Current through Register Vol. 51, No. 14, July 12, 2024
A. Notice of Termination.
(1) If a debtor is covered by a group credit involuntary unemployment benefit insurance policy providing for payment of premiums to the insurer on a monthly premium basis, the policy shall provide that in the event of termination of the policy for any reason:
(a) The insured debtor shall be given written notice of termination; and
(b) Except if replacement of the coverage by the same or another insurer in the same or greater amount takes place without interruption of coverage and a new certificate reflecting the replacement coverage is delivered to the insured debtor, coverage will continue for at least 31 days from the date of notice.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.20 - Benefits

Current through Register Vol. 51, No. 14, July 12, 2024
A. If a debtor has filed in accordance with the policy provisions a claim for benefits for which the insurer is liable under a credit involuntary unemployment benefit insurance policy, the insurer shall pay any late charges accruing on the amount payable under the claim after the date the claim has been filed.
B. For monthly premium credit involuntary unemployment benefit insurance:
(1) The amount of the monthly benefit payable on a revolving, open end, account shall be the greater of the minimum payment required by the creditor or 3 percent of the debt at the time of involuntary unemployment, subject to any policy maximum; and
(2) If involuntary unemployment occurs prior to the date of termination of the policy or prior to the date of termination of coverage of an insured debtor and if benefits would otherwise have been payable, benefits shall be paid as if coverage continued.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.21 - Review of Credit Operations

Current through Register Vol. 51, No. 14, July 12, 2024
A. Review Required.
(1) Every insurer transacting credit involuntary unemployment benefit insurance business in Maryland shall conduct a review of each of its creditor accounts with respect to the credit involuntary unemployment benefit insurance business of the creditor to ensure compliance with the insurance laws and regulations of Maryland.
(2) Unless a satisfactory review has been made within 2 years before the effective date of this chapter, the first review shall be made not later than 15 months after the effective date of this chapter or of the date of the initial credit involuntary unemployment benefit insurance transaction between the creditor and the insurer, whichever is later.
(3) After review under §A(2) of this regulation, a review shall be made not later than 36 months after the last preceding review.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 13 - CREDIT LIFE AND CREDIT HEALTH INSURANCE › Chapter 31.13.03 - Standards for Credit Involuntary Unemployment Benefit Insurance › Section 31.13.03.22 - Effective Date

Current through Register Vol. 51, No. 14, July 12, 2024
A. An individual policy, group policy, or group certificate of credit involuntary unemployment benefit insurance not in conformity with this chapter may not be issued or continued to be used in connection with any loan made on or after the effective date of this chapter.
B. A premium in excess of that permitted by these regulations may not be charged for credit involuntary unemployment benefit insurance, and a commission or other form of benefit may not be paid to insurance producers or creditors in excess of the premium and commission rates permitted under this chapter for credit involuntary unemployment benefit insurance which is issued in connection with any loan made on or after the effective date of this chapter.