3 Colo. Code Regs. § 702-4-9-2-A

Current through Register Vol. 47, No. 16, August 25, 2024

Appendix 3 CCR 702-4-9-2-A - Summary of Component-Based Rates (for policies or certificates issued on or after July 15, 2022)

All Rates Listed in Section 1 through 6 are for Single Life Coverage.

1 Single Premium Life Insurance- Not for use by Credit Union Accounts

1A. Gross decreasing term coverage: The rate is $0.49 per $100 per year.

1B. Net decreasing term coverage: The rate is the sum of the component-based Monthly Outstanding Balance Life Insurance rate for All Other as in 2B. below, applied to the amount of coverage in force during each month.

1C. Truncated coverage: The rate is the sum of the component-based Monthly Outstanding Balance Life Insurance rate for All Other as in 2B. below, applied to the amount of net coverage in force during each month.

1D. Level Term coverage: The component-based rate is $0.90 per $100 per year.

2 Monthly Outstanding Balance Life Insurance- Not for use by Credit Union Accounts 2A. Revolving charge accounts: The component-based rate is $0.75 per $1,000 per month. 2B. All other: The component-based rate is $0.75 per $1,000 per month.

3 Single Premium Disability Insurance- Rates per $100 of Initial Insurance- Not for use by Credit Union accounts

3A. Full Benefit Rates or the End of the Loan Term: Rates per $100 of Initial Insurance- Not for use by Credit Union Accounts

14 Retro	14 Non-Retro	30 Retro	30 Non-Retro
6	1.20	0.83	0.93	0.52
12	1.58	1.19	1.31	0.85
24	2.00	1.57	1.71	1.22
36	2.28	1.83	2.00	1.48
48	2.53	2.06	2.23	1.70
60	2.75	2.26	2.44	1.91
72	2.95	2.45	2.64	2.09
84	3.13	2.63	2.83	2.27
96	3.32	2.80	3.01	2.44
108	3.49	2.96	3.18	2.60
120	3.67	3.12	3.35	2.76

3B. Benefit Limited to the lesser of 12 months or the End of the Loan Term: Rates per $100 of Initial Insurance- Not for use by Credit Union Accounts

Months	14 Retro	14 Non-Retro	30 Retro	30 Non-Retro
6	1.20	0.83	0.93	0.52
12	1.58	1.19	1.31	0.85
24	1.87	1.45	1.58	1.12
36	1.96	1.55	1.67	1.21
48	2.01	1.58	1.72	1.25
60	2.04	1.62	1.75	1.28
72	2.06	1.64	1.76	1.30
84	2.07	1.65	1.78	1.31
96	2.08	1.66	1.79	1.32
108	2.08	1.66	1.80	1.32
120	2.09	1.67	1.81	1.33

3C. Benefit Limited to the lesser of 24 months or the End of the Loan Term: Rates per $100 of Initial Insurance- Not for use by Credit Union Accounts

Months	14 Retro	14 Non-Retro	30 Retro	30 Non-Retro
6	1.20	0.83	0.93	0.52
12	1.58	1.19	1.31	0.85
24	2.00	1.57	1.71	1.22
36	2.21	1.77	1.92	1.42
48	2.33	1.87	2.02	1.53
60	2.39	1.94	2.09	1.59
72	2.43	1.98	2.13	1.63
84	2.46	2.00	2.16	1.66
96	2.49	2.03	2.18	1.68
108	2.50	2.05	2.20	1.70
120	2.51	2.06	2.22	1.71

3D. Benefit Limited to the lesser of 36 months or the End of the Loan Term: Rates per $100 of Initial Insurance- Not for use by Credit Union Accounts

Months	14 Retro	14 Non-Retro	30 Retro	30 Non-Retro
6	1.20	0.83	0.93	0.52
12	1.58	1.19	1.31	0.85
24	2.00	1.57	1.71	1.22
36	2.28	1.83	2.00	1.48
48	2.48	1.99	2.17	1.66
60	2.59	2.10	2.30	1.78
72	2.68	2.17	2.37	1.85
84	2.72	2.23	2.42	1.91
96	2.77	2.27	2.46	1.94
108	2.80	2.30	2.50	1.98
120	2.83	2.33	2.52	2.00

4 Closed End MOB

Monthly Premium Disability Insurance (premium base = remaining principal balance)

Rates per $1,000 of Remaining Principal Balance - Not for use by Credit Union Accounts.

4A. Full Benefit Rates or the End of the Loan Term: Rates per $1,000 of Remaining Principal Balance- Not for use by Credit Union Accounts

a. Duration specific rates

Months	14 Retro	14 Non-Retro	30 Retro	30 Non-Retro
6	3.50	2.43	2.73	1.52
12	2.54	1.91	2.09	1.36
24	1.72	1.34	1.47	1.04
36	1.37	1.10	1.19	0.89
48	1.18	0.96	1.04	0.80
60	1.06	0.88	0.95	0.73
72	0.98	0.81	0.88	0.70
84	0.92	0.78	0.83	0.67
96	0.89	0.74	0.80	0.65
108	0.85	0.72	0.77	0.64
120	0.82	0.71	0.75	0.63

b. Composite term rates for all durations.

14 Retro	14 Non-Retro	30 Retro	30 Non-Retro
1.26	1.02	1.10	0.83

4B. Benefit Limited to the lesser of 12 months or the End of the Loan Term: Rates per $1,000 of Remaining Principal Balance- Not for use by Credit Union Accounts

a. Composite term rates for all durations.

14 Retro	14 Non-Retro	30 Retro	30 Non-Retro
1.04	0.81	0.89	0.64

4C. Benefit Limited to the lesser of 24 months or the End of the Loan Term: Rates per $1,000 of Remaining Principal Balance- Not for use by Credit Union Accounts

a. Duration specific rates

Months	14 Retro	14 Non-Retro	30 Retro	30 Non-Retro
6	3.50	2.43	2.73	1.52
12	2.54	1.91	2.09	1.36
24	1.72	1.34	1.47	1.04
36	1.32	1.06	1.15	0.85
48	1.08	0.88	0.95	0.72
60	0.92	0.75	0.81	0.62
72	0.81	0.66	0.71	0.55
84	0.72	0.59	0.64	0.49
96	0.66	0.54	0.58	0.45
108	0.61	0.50	0.54	0.41
120	0.56	0.47	0.50	0.38

5 Single Premium Unemployment Insurance (Note- this is a per claim benefit, but is refreshable after a 31 day back to work event.) 30 Day Retroactive, 9 Month Benefit- Without coverage for family leave.

$4.62 per $100 initial gross indebtedness per year.

6 Monthly Outstanding Balance Unemployment Insurance

6A. 30 Day Retroactive, 6 Month Benefit- Without coverage for family leave: $3.00 per $1,000 of remaining principal balance; $2.61 per $1,000 of remaining payments.

6B. 30 Day Retroactive, 9 Month Benefit- Without coverage for family leave. $3.84 per $1,000 of remaining principal balance; $3.35 per $1,000 of remaining payments.

7 Property- Dual Interest

Single premium: $2.18 per $100 Initial Gross Indebtedness per year.

8 Joint Life Factors for Life, Disability and Unemployment Coverages

8A. Life and disability coverages may be offered on a joint life basis. The component-based rate for joint lives, for the life insurance coverage listed in Sections 1 and 2, is obtained by multiplying the listed single life rate by 1.65.

8B. The component-based rate for joint lives, for the disability insurance coverages listed in Sections 3 and 4 is obtained by multiplying the listed single life rate by 1.75. If joint disability coverage is written such that the total monthly indemnity is split between two insured individuals, the component-based rate is obtained by multiplying the listed single life rate by 1.00.

8C. The component-based rate for joint lives, for the unemployment insurance coverages listed in Sections 5 and 6 is obtained by multiplying the listed single life rate by 1.75.

9 Open-End MOB- Calculation Methodology

Monthly Premium Disability Insurance- Rates per $1,000 of Remaining Principal Balance (RPB).

Not for use by Credit Union Accounts.

Maximum Benefit Equal to Outstanding Debt on Date of Disability Plus Accrued Interest Rates per $1,000 of Remaining Principal Balance

a. Closed-End MOB Rates per $1,000 of Remaining Payments Section 4A(a)- Chart b. Solve For "n"

The formula for the derivation of "n", the term of insurance for which the premium is n = ln [1- (1000i / x)] / ln [v)] where i is the monthly interest rate, x is the payment per $1,000 of RPB, and v = 1 / (1+i). "n" should be rounded up.

c. From the chart defined in subsection (1) above, for the "elimination period" provided, find the Closed-End MOB Rate per $1,000 of RPB for "n" Mo Term.

d. Open-End MOB Rate per $1,000 of RPB for the "elimination period" provided = (Closed-End MOB Rate per $1,000 of RPB for "n" Mo Term) x (n / an) where an = (1-vⁿ) / i.

3 CCR 702-4-9-2-A

37 CR 11, June 10, 2014, effective 7/1/2014

37 CR 12, June 25, 2014, effective 7/15/2014

Colorado Register, Vol 37, No. 14. July 25, 2014, effective 8/15/2014

37 CR 23, December 10, 2014, effective 1/1/2015

38 CR 03, February 10, 2015, effective 3/15/2015

38 CR 06, March 25, 2015, effective 4/30/2015

38 CR 09, May 10, 2015, effective 6/1/2015

38 CR 13, July 10, 2015, effective 7/30/2015

38 CR 19, October 10, 2015, effective 11/1/2015

38 CR 21, November 10, 2015, effective 1/1/2016

38 CR 23, December 10, 2015, effective 1/1/2016

39 CR 01, January 10, 2016, effective 2/1/2016

39 CR 05, March 10, 2016, effective 4/1/2016

39 CR 08, April 25, 2016, effective 5/15/2016

39 CR 19, October 10, 2016, effective 11/1/2016

39 CR 20, October 25, 2016, effective 1/1/2017

39 CR 22, November 25, 2016, effective 1/1/2017

39 CR 23, December 10, 2016, effective 1/1/2017

39 CR 23, December 25, 2016, effective 1/1/2017

40 CR 03, February 10, 2017, effective 3/15/2017

40 CR 09, May 10, 2017, effective 6/1/2017

40 CR 15, August 10, 2017, effective 9/1/2017

40 CR 17, September 10, 2017, effective 10/1/2017

40 CR 21, November 10, 2017, effective 12/1/2017

41 CR 04, February 25, 2018, effective 4/1/2018

41 CR 05, March 10, 2018, effective 6/1/2018

41 CR 08, April 25, 2018, effective 6/1/2018

41 CR 09, May 10, 2018, effective 6/1/2018

41 CR 11, June 10, 2018, effective 7/1/2018

41 CR 15, August 10, 2018, effective 9/1/2018

41 CR 17, September 10, 2018, effective 10/1/2018

41 CR 18, September 25, 2018, effective 10/15/2018

41 CR 21, November 10, 2018, effective 12/1/2018

41 CR 23, December 10, 2018, effective 1/1/2019

42 CR 01, January 10, 2019, effective 2/1/2019

41 CR 19, October 10, 2018, effective 3/1/2019

42 CR 03, February 10, 2019, effective 4/1/2019

42 CR 04, February 25, 2019, effective 4/1/2019

42 CR 06, March 25, 2019, effective 6/1/2019

42 CR 08, April 10, 2019, effective 6/1/2019

42 CR 15, August 10, 2019, effective 9/1/2019

42 CR 17, September 10, 2019, effective 10/1/2019

43 CR 02, January 25, 2020, effective 12/20/2019

43 CR 02, January 25, 2020, effective 12/23/2019

42 CR 23, December 10, 2019, effective 1/1/2020

43 CR 01, January 10, 2020, effective 2/1/2020

42 CR 24, December 25, 2019, effective 2/2/2020

43 CR 06, March 25, 2020, effective 4/15/2020

43 CR 10, May 25, 2020, effective 8/1/2020

43 CR 14, July 25, 2020, effective 8/15/2020

43 CR 17, September 10, 2020, effective 10/1/2020

43 CR 18, September 25, 2020, effective 11/1/2020

43 CR 22, November 25, 2020, effective 12/15/2020

43 CR 24, December 25, 2020, effective 1/15/2021

44 CR 03, February 10, 2021, effective 3/15/2021

44 CR 08, April 25, 2021, effective 5/15/2021

44 CR 09, May 10, 2021, effective 6/1/2021

44 CR 10, May 25, 2021, effective 6/14/2021

44 CR 10, May 25, 2021, effective 6/15/2021

44 CR 13, July 10, 2021, effective 8/1/2021

44 CR 15, August 10, 2021, effective 9/1/2021

44 CR 19, October 10, 2021, effective 11/1/2021

44 CR 21, November 10, 2021, effective 12/1/2021

44 CR 23, December 10, 2021, effective 12/30/2021

44 CR 21, November 10, 2021, effective 1/1/2022

44 CR 23, December 10, 2021, effective 1/15/2022

44 CR 24, December 25, 2021, effective 1/15/2022

45 CR 03, February 10, 2022, effective 3/2/2022

45 CR 08, April 25, 2022, effective 5/30/2022

45 CR 09, May 10, 2022, effective 5/30/2022

45 CR 10, May 25, 2022, effective 6/14/2022

45 CR 11, June 10, 2022, effective 6/30/2022

45 CR 11, June 10, 2022, effective 7/15/2022

45 CR 19, October 10, 2022, effective 11/1/2022

45 CR 20, October 25, 2022, effective 11/14/2022

45 CR 21, November 10, 2022, effective 11/30/2022

45 CR 24, December 25, 2022, effective 1/14/2023

46 CR 01, January 10, 2023, effective 2/14/2023

46 CR 06, March 25, 2023, effective 2/15/2023

46 CR 03, February 10, 2022, effective 3/2/2023

46 CR 04, February 25, 2023, effective 3/17/2023

46 CR 05, March 10, 2023, effective 4/15/2023

46 CR 09, May 10, 2023, effective 5/30/2023

46 CR 09, May 10, 2023, effective 6/1/2023

46 CR 10, May 25, 2023, effective 6/15/2023

46 CR 11, June 10, 2023, effective 6/30/2023