HAR §16-6-11. Credit life insurance premium rates

(a) For declining balance term credit life insurance, a single premium of forty cents per $100 of initial insured indebtedness repayable in equal monthly installments over a one-year period. Single premium rates for indebtedness repayable in equal monthly installments other than twelve in number shall be one-twelfth of the foregoing premium rate multiplied by the number of full months in the scheduled repayment period. (b) When monthly premiums are charged on the basis of the then outstanding loan balance, a monthly premium rate not to exceed 61.8 cents per $1,000 of outstanding balance will be deemed the actuarial equivalent of the forty cents rate. (c) For single life level term credit life insurance, a single premium of seventy-four cents per $100 per annum. (d) For joint life declining balance term credit life insurance, a single premium rate of seventy cents per $100 of initial insured indebtedness repayable in twelve equal monthly installments over a one-year period. (e) A combination of the appropriate rate for level term and the appropriate rate for declining balance term (with equal decrements), if coverage provided is a combination of level term and declining balance term (with equal decrements). (f) The actuarial equivalent of the rates in subsections (a), (b), (c), (d) and (e) if the benefits provided are other than those described in these five 6-5 §16-6-11 subsections, or if premiums are to be determined according to the age of the insured debtor or by age bracket. (g) The premium rates specified above are presumed reasonable only in relation to a plan of death benefits: (1) Which does not contain any exclusions or exceptions, other than suicide within one year of the incurred indebtedness; and (2) Which does not contain any age restrictions, or only age restrictions making ineligible for coverage debtors age sixty-five or over at the time the indebtedness is incurred, or debtors who will have attained age sixty-six or over on the maturity date of the indebtedness. (h) If any insurer files for approval any form providing coverage more restrictive than that described in subsection (g) above, the insurer shall demonstrate to the satisfaction of the insurance commissioner that the premium rates to be charged for such restricted coverage shall produce a loss ratio not less than that contemplated for standard coverage at the premium rates described in sections (a) to (f) above. [Eff 6/22/81; am and comp 12/16/88] (Auth: HRS §§431:2-201, 431:10B-113) (Imp: HRS §431:10B-109)