Credit Insurance Sold by Motor Vehicle Dealers

[LOGO] JANE SWIFT GOVERNOR COMMONWEALTH OF MASSACHUSETTS Office of Consumer Affairs and Business Regulation DIVISION OF INSURANCE One South Station • Boston, MA 02110-2208 (617) 521-7794 • FAX (617) 521-7773 TTY/TDD (617) 521-7490 http://www.state.ma.us/doi BULLETIN No. 01-11 JENNIFER DAVIS CAREY DIRECTOR, CONSUMER AFFAIRS AND BUSINESS REGULATION LINDA RUTHARDT COMMISSIONER OF INSURANCE To: All Companies Writing Credit Life and Credit Accident And Health Insurance From: Linda Ruthardt, Commissioner of Insurance Linda Ruthardt Re: Credit Insurance Sold by Motor Vehicle Dealers Date: September 28, 2001 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, 2002 through December 31, 2004. The statutory prima facie rates for 2002-2004 for the motor vehicle dealer class of business remain unchanged and are: 1. For credit life insurance, the nominal rates per one thousand dollars of insurance in force per month shall be forty six cents for single life insurance, and one hundred and sixty percent of said single life insurance rate for joint life insurance, or seventy four cents. 2. For credit accident and health insurance, single premium rates for each one hundred dollars of initial indebtedness shall be fifty two cents per annum for each of the first four years of the term of coverage, thirty seven cents per annum for each of the next three years of the term of coverage and nineteen cents per annum for each year of coverage thereafter. Any questions concerning this bulletin should be directed to Frederick Lonsdale at (617) 521-7344.