Revision of Credit Insurance Rates

THOMAS J. VILSACK INSURANCE DIVISION GOVERNOR IOWA DEPARTMENT OF COMMERCE SALLY J. PEDERSON LT. GOVERNOR 330 Maple Street / Des Moines, Iowa 50319-0065 / 515-281-5705 / Facsimile 515-281-3059 http://www.iid.state.ia.us Bulletin 00-04 TO: All Writers of Credit Life and Credit Accident and Health Insurance in Iowa FROM: Therese M. Vaughan, Commissioner RE: Revision of Credit Insurance Rates DATE: December 4, 2000 Pursuant to IAC 191-28.10(3), the Commissioner of Insurance publishes the following rates to be effective March 30, 2001. This bulletin supersedes Bulletin 1994-1, dated February 7, 1994. Iowa Credit Insurance Prima Facie Rates Effective MARCH 30, 2001 =================Credit Life Insurance Rates===================== Single Premium Rates Monthly Premium Rates Per Year / $100 of Indebtedness Per $1,000 of Principal Single Decreasing $.45 Single Life $.69 Joint Decreasing $.75 Joint Life $1.15 Single Level $.82 Joint Level $1.36 =====================Credit Disability Insurance Rates======================== Single Premiums / $100 of Indebtedness Monthly Rates / $1,000 of Indebtedness Term 14 Day Retro 14 Day Elim 30 Day Retro 30 Day Elim 14 Day Retro 14 Day Elim 30 Day Retro 30 Day Elim 12 $1.81 $1.15 $1.40 $0.66 $2.78 $1.77 $2.15 $1.02 24 $2.47 $1.81 $2.06 $1.31 $1.98 $1.45 $1.65 $1.05 36 $3.12 $2.47 $2.71 $1.97 $1.69 $1.34 $1.46 $1.06 48 $3.53 $2.88 $3.12 $2.38 $1.44 $1.18 $1.27 $0.97 60 $3.87 $3.21 $3.46 $2.71 $1.27 $1.05 $1.13 $0.89 72 $4.23 $3.57 $3.82 $3.07 $1.16 $0.98 $1.05 $0.84 84 $4.59 $3.93 $4.18 $3.43 $1.08 $0.92 $0.98 $0.81 96 $4.95 $4.29 $4.54 $3.79 $1.02 $0.88 $0.94 $0.78 108 $5.31 $4.65 $4.90 $4.15 $0.97 $0.85 $0.90 $0.76 120 $5.67 $5.01 $5.26 $4.51 $0.94 $0.83 $0.87 $0.75 Rates for nonstandard coverage such as truncated life, net balance, critical period disability, etc. are subject to Division approval. The formula used to convert single premium disability rates to monthly rates is: [20/(n + 1)] x Single Premium. Credit A&H rates for durations less than 12 months shall be derived by the pro-rata method. Rates for durations of more than 12 months but less than 60 months (which are not listed), shall be derived by linear interpolation. 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. All results should be rounded to the nearest cents. Joint A&H rates shall be calculated as the following: Single x 1.60