Determination of reasonableness of benefits in relation to premium charge

1. Benefits provided by consumer credit insurance policies must be reasonable in relation to the premium charged. Premium rates charged for credit life or disability satisfy this requirement if the premium rate charged develops or may reasonably be expected to develop a loss ratio of not less than forty-five percent. With the exception of deviations approved under section 45-07-01.1-10, the rates shown in sections 45-07-01.1-04 and 45-07-01.1-05, as adjusted pursuant to section 45-07-01.1-09, shall be presumed to satisfy this standard. Anticipated losses that develop or are expected to develop a loss ratio of not less than forty-five percent shall be presumed reasonable. Any insurer filing a deviation in accordance with section 45-07-01.1-10 must satisfy the sixty percent loss ratio standard on its total consumer credit insurance business, including that of affiliated insurers, for each type of insurance defined in North Dakota Century Code section 26.1-37-02 for which the deviation is being filed. 2. Premium rates charged for credit unemployment or credit property satisfy this requirement if anticipated losses are expected to develop a loss ratio of no less than forty-five percent. 3. Nonstandard coverage. If any insurer files for approval of any form providing coverage different than that described in sections 45-07-01.1-04 through 45-07-01.1-06, the insurer shall demonstrate to the satisfaction of the commissioner that the premium rates to be charged for such coverage are: a. Reasonably expected to develop a loss ratio of not less than sixty percent; or b. Actuarially consistent with the rates used for standard coverages.