Credit Insurance - INS 1200

The State of New Hampshire Insurance Department 21 South Fruit Street, Suite 14 Concord, NH 03301 Roger A. Sevigny Commissioner Alexander K. Feldvebel Deputy Commissioner BULLETIN Docket Number: INS NO. 10-003-AB TO: All Carriers Issuing Credit Insurance FROM: Roger A. Sevigny, Insurance Commissioner DATE: January 5, 2010 RE: Credit Insurance – INS 1200 ________________________________________________________________________ The Department has readopted INS 1200, rules relating to credit insurance. The new rule includes new actual premium rates and factors, aka prima facie rates. While the rule is effective January 4, 2010, the Department has agreed that carriers may have until April 1, 2010 to fully implement new rates provided that any policies issued or renewed after January 4, 2010 that should have received a lower rate, will realize a retroactive adjustment to the extent the premium paid exceeded that permitted by the new rule. As a Credit Insurance Company, you may be required to submit a new rate filing based on your premium development methodology and the guidelines below. Carriers using the actual premium rates as prescribed in INS 1200 do not need to file rates. These rates have been established by rule and are deemed approved. Carriers that have rate deviations in place to account for varying coverage provisions from those specified by rule may not need to file rates as a result of these new rules. Generally, these rate deviations involve approved factors that are applied to the prescribed nominal premium rates. Where carriers are using these same approved factors, no rate filing is necessary. If the carrier has developed rates and/or rating factors that are not a function of the prescribed nominal premium rates and factors, or is proposing a change to its approved factors then the carrier is required to submit a new rate filing. Carriers that have experience rate deviations in place generally will not have to make a new rate filing. Experience rate deviations involve the application of a factor to the nominal premium rates. To the extent these factors aren’t changing, no rate filing is necessary. However, these carriers should note that to the extent any deviated rate is a function of an actual premium rate that has changed effective January 4, 2010, then the related deviated rate will need to change as of that date. Questions related to this bulletin shall be addressed to David Sky, Life, Accident and Health Actuary, david.sky@ins.nh.gov.