Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 60 - Miscellaneous › Part 1 - Consumer Credit Insurance (230-RICR-20-60-1) › Section 230-RICR-20-60-1.7 - Credit Accident and Health Insurance

Current through June 14, 2024
A. Premium Rate.
				  Subject to the conditions and requirements in §§
										1.6(B)  and  1.11   of
				  this Part, the prima facie rates shown below are considered to meet the
				  requirements of §
										1.4   of this Part, and may be used without filing
				  additional actuarial support.
1. If premiums
				  are payable on a single-premium basis for the duration of the coverage the
				  prima facie rate per $100 of initial insured debt for single accident and
				  health is as set forth in the table below (rates for monthly periods other than
				  those listed shall be interpolated or extrapolated):
Original Number
of Equal
Monthly
Installments
14 Day
Non-
Retroactive
Policies
14 Day
Retroactive
Policies
30 Day
Non
Retroactive
Policies
30 Day
Retroactive
Policies
6
0.90
1.32
1.02
1.02
12
1.50
2.19
1.70
1.70
24
1.90
2.61
2.14
2.14
36
2.21
2.91
2.46
2.46
48
2.50
3.22
2.76
2.76
60
2.78
3.50
3.05
3.05
72
*
*
1.02
*
84
*
*
1.70
*
96
*
*
2.14
*
108
*
*
2.46
*
120
*
*
2.76
*
* There are no prima facie rates for these
								categories nor for loans in excess of one hundred twenty (120) months. Subject
								to approval by the Commissioner, such loans may be insured on any monthly
								premium basis that can be actuarially demonstrated to produce an anticipated
								loss ratio of at least sixty percent (60%).
2.
				  If premiums are paid on the basis of a premium rate per month per thousand of
				  outstanding insured gross debt, these premiums shall be computed according to
				  the following formula or according to a formula approved by the Commissioner
				  which produces rates actuarially consistent with the single premium rates in
				  §
											1.7(A)(1)   of this Part:
10 SPn
OPn = ___________________________
n
{N-ARY SUMATION (vt - 1 x ( n-t+1))}
t = 1 n
1
where v =
1 + (dis)
Where SPn = Single Premium Rate per $100 of initial
								insured debt repayable in n equal monthly installments as shown in
								§
																1.7(A)(1)   of this Part.
OPn = Monthly Outstanding Balance Premium Rate per
								$1,000.
n = The number of months in the term of the
								insurance.
dis = .0016, representing an annual discount rate
								of 1.924 percent for interest.
3.
				  If the coverage provided is a constant maximum indemnity for a given period of
				  time, the actuarial equivalent of §§
											1.7(A)(1) and (2)   of this Part
				  shall be used.
4. 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, 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 shall be used.
5. 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.