Credit Insurance Sold by Motor Vehicle Dealers; Issued 11/19/1992

Sent 07 11/27/92 THE COMMONWEALTH OF MASSACHUSETTS EXECUTIVE OFFICE OF CONSUMER AFFAIRS DIVISION OF INSURANCE 280 FRIEND STREET, BOSTON, 02114 (617) 727-7189 GLORIA C. LARSON SECRETARY KAY DOUGHTY COMMISSIONER # BULLETIN 92-04 To: All Companies Writing Credit Life and Credit Accident and Health Insurance FROM: Kay Doughty, Commissioner of Insurance RE: Credit Insurance Sold by Motor Vehicle Dealers DATE: November 19, 1992 Pursuant to M.G.L. c. 175, s. 117C (F) (2), I am required to review the combined experience of all insurers for the motor vehicle dealers class of business, and compute the appropriate rates for credit life and credit accident and health insurance sold through automobile dealers, for policies issued or renewed, commencing on January 1, 1992 through December 31, 1995. The statutory prima facie rates for 1993-1995 for the motor vehicle class of business are: 1. For credit life insurance, the nominal rates per one thousand dollars of insurance in force per month shall be forty nine cents for single life insurance, and one hundred and sixty percent of said single life insurance rate for joint life insurance, or seventy eight cents. 2. For credit accident and health insurance, single premium rates for each one hundred dollars of initial insured indebtedness shall be fifty nine cents per annum for each of the first four years of the term of coverage, forty two cents per annum for each of the next three years of the term coverage and twenty one cents per annum for each year of coverage thereafter.