23 CAR § 83-107. Standards and principles for application of the credit disability rates

(a) The standards and principles for the application of the rates set forth in 23 CAR § 83-106 are as follows: (1) The initial amount of insured indebtedness to which the rate is applied shall not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness; (2) The indebtedness is repayable in substantially equal monthly installments during the period of coverage; (3)(A) The rates for premiums payable on other than a single premium basis shall be the actuarial equivalent of the rates set forth in 23 CAR § 83-106. (B) Such premium rates will be deemed the actuarial equivalent of the foregoing single premium rates if such rates produce a total premium for any duration and amount of insurance equal to the corresponding single premium for the same duration and amount of insurance; and (4) The credit disability insurance contract: (A) Does not cover disabilities resulting from preexisting: (i) Illness; (ii) Disease; or (iii) Physical condition; (B) May require: (i) Submission of evidence of insurability; and (ii) That the debtor be in gainful employment at the time the insurance becomes effective; and (C) Contains no exclusions other than: (i) Disability resulting from normal pregnancy; (ii) Intentionally self-inflicted injuries; (iii) Foreign travel or residence; (iv) Flight in nonscheduled aircraft; (v) War; or (vi) Military service. (b) The eligibility for disability coverage may be restricted on account of age in the same manner as permitted for credit life insurance in 23 CAR § 83-105(b)(2).