Iowa Administrative Code › Agency 191 - Insurance Division › Property and Casualty Insurance › Chapter 28 - Credit Life and Credit Accident and Health Insurance › Rule 191-28.8 - Credit Accident and Health Insurance

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
				Premium rate. Credit accident and health insurance premium rates for the
				insured portion of an indebtedness repayable in equal monthly installments,
				where the insured portion of the indebtedness decreases uniformly by the amount
				of the monthly installment paid, shall be as set forth in
				paragraphs
"a"
and
"b"
below.
				Paragraphs
"c, " "d"
and
"e"
refer to premium
				rates for other types of benefits either alone or in combination with the type
				of benefits applicable to paragraphs
"a"
and
"b.
				"
a. If premiums are payable on a
				single premium basis for the duration of the coverage, the rates shall be as
				follows:
Single Premium Per $100 of Initial Insured
				  Indebtedness
Months
Nonretroactive 14-Day
						  Elimination
30-Day
						  Elimination
Retroactive 14-Day
						  Elimination
30-Day Elimination
12
$1.26
$0.72
$1.98
$1.53
24
$1.98
$1.44
$2.70
$2.25
36
$2.70
$2.16
$3.42
$2.97
48
$3.15
$2.61
$3.87
$3.42
60
$3.51
$2.97
$4.23
$3.78
Credit accident and health insurance rates for durations less
				  than 12 months shall be derived by multiplying the number of months by
				  one-twelfth of the 12-month rate. Rates for durations of more than 12 months
				  but less than 60 months, which are not listed above shall be derived by
				  straight-line interpolation between the listed rates, with the results roimded
				  to the nearest cent. Rates for durations exceeding 60 months shall be derived
				  by adding 3 cents to the 60-month rate for each month in excess of 60 months
				  and rounding to the nearest cent.
b. If premiums are paid on the basis of a
				premium rate per month per $1,000 of outstanding insured indebtedness, these
				premiums shall be computed according to the following formula or according to a
				formula approved by the insurance commissioner which produces rates actuarially
				equivalent to the single premium rates:
Opn = 20 SPn /
				  n+1
Where SPn=Single Premium Rate per $100
				  of initial insured indebtedness repayable in n equal monthly
				  installments.
Op=Monthly Outstanding Balance Premium Rate per $1,000.
				  n=Original repayment period, in months.
c. The actuarial equivalent of
				paragraphs
"a"
and
"b"
shall be used if the
				coverage provided is a constant maximum indemnity for a given period of
				time.
d. An appropriate combination
				of the premium rate for a constant maximum indemnity for a given period of time
				and the premium rate for a maximum indemnity which decreases in even amounts
				per month, if the coverage provided is a combination of a constant maximum
				indemnity for a given period of time after which the maximum indemnity begins
				to decrease in even amounts per month.
e. If the benefits provided are other than
				those described in paragraph
"a"
above, rates shall be
				actuarially consistent with rates provided in paragraphs
"a, " "b, " "c
				"
and
"d."
f. The outstanding balance rate for credit
				accident and health insurance may be either a term-specified rate or may be a
				single composite term outstanding balance rate applicable to all loans made
				under open-end or closed-end credit plans.