Credit Insurance Sold by Motor Vehicle Dealers

[LOGO] PRISCILLA H. DOUGLAS SECRETARY LINDA RUTHARDT COMMISSIONER THE COMMONWEALTH OF MASSACHUSETTS EXECUTIVE OFFICE OF CONSUMER AFFAIRS DIVISION OF INSURANCE 470 ATLANTIC AVENUE BOSTON, MA 02210-2223 (617) 521-7794 TTY/TDD (617) 521-7490 BULLETIN No. 95-10 To: All Companies Writing Credit Life and Credit Accident and Health Insurance From: Linda Ruthardt, Commissioner of Insurance Ruthardt Re: Credit Insurance Sold by Motor Vehicle Dealers Date: September 29, 1995 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, 1996 through December 31, 1998. The statutory prima facie rates for 1996-1998 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 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 of coverage and twenty one cents per annum for each year of coverage thereafter. Any questions concerning this bulletin should be directed to Frederick Lonsdale at (617) 521-7344.