Prima Facie Credit Insurance Rates

EARL R. POMEROY COMMISSIONER OF INSURANCE State of North Dakota DEPARTMENT OF INSURANCE 600 E. Boulevard Bismarck, North Dakota 58505 Telephone (701) 224-2440 Consumer "HOTLINE" 1-800-247-0560 # BULLETIN 92-3 TO: ALL INSURANCE COMPANIES WRITING CREDIT LIFE INSURANCE IN NORTH DAKOTA FROM: Earl R. Pomeroy, Commissioner DATE: March 24, 1992 SUBJECT: Prima Facie Credit Insurance Rates Earl R. Pomeroy Enclosed is an administrative rule which adjusts downward the prima face rates which may be charged for credit life insurance sold in North Dakota. These rates will apply to all coverage issued on or after April 1, 1992 (the effective date of the rule). This includes new contracts or certificates issued under group policies on or after April 1, 1992. Credit disability rates will not change at this time nor will the joint life factor of 1.7. Thank you for your attention to this matter. ERP/njb Enclosure (over) 12/19/91 # FINAL PROPOSED RULE SECTION 45-07-01-02 CREDIT LIFE Subdivisions c, d, e, and f of subsection 2 of Section 45-07-01-02 of the North Dakota Administrative Code is amended as follows: c. If premiums are paid or charged in a single sum, for decreasing coverage, for the entire duration of the indebtedness, such standard will be as specified below: CREDIT LIFE INSURANCE (Both Group and Individual) Single Premium Rate Per $100 of Initial Insured Indebtedness, Repayable in Twelve Equal Monthly Installments Sixty cents and beginning January 1, 1989, fifty Forty cents The single premium rate standard for coverage on indebtedness repayable in installments other than twelve in number will be equal to one-twelfth of the above premium rate multiplied by the number of full months in the period of such indebtedness. d. If premiums are paid monthly on outstanding insurance balances, such standard will be ninety- four cents and beginning January 1, 1989, seventy- eight sixty-two cents per month per one thousand dollars of insurance in force. installments other than twelve in number will be equal to one-twelfth of the above premium rate multiplied by the number of full months in the period of such indebtedness. d. If premiums are paid monthly on outstanding insurance balances, such standard will be ninety- four cents and beginning January 1, 1989, seventy- eight sixty-two cents per month per one thousand dollars of insurance in force. e. If credit life insurance is provided on a level basis, such premium standard will be one-dollar twelve cents and beginning January 1, 1989, ninety-three seventy-four cents per year per one hundred dollars of insurance in force. f. For joint credit life coverage, a prima facie rate equal to 1.7 times the rate which would otherwise apply to that type of coverage. History: Amendment effective April 1, 1992 General Authority: NDCC 26.1-30-19, 26.1-37-15 Law Implemented: NDCC 26.1-30-19(2), 26.1-30-19(3), 26.1-37