3 Colo. Code Regs. § 702-4-9-2-12
Current through Register Vol. 47, No. 16, August 25, 2024
Section 3 CCR 702-4-9-2-12 - RatesWith the exception of the use of component based rates as permitted in Section 12.B. of this regulation, the maximum permissible premium rates for credit insurance shall be filed concurrent with the effective date with the Commissioner. An insurer may at any time use rates lower than those that are filed. If the insurer chooses to use rates that are equal to or lower than those presented in Appendix A, of this regulation, a rate filing is not required to be submitted.
A. Credit Insurance Directly Written by a State or National Bank All credit insurance written directly by a state or national bank may, at the insurer's option, be rated by either of the methods described in Section 12.B. and D.
However, if the insurer chooses to rate according to Section 12.D., the insurer shall file, with the Division, a listing of the policy forms for which the rates will be determined according to Section 12.D. This filing shall be submitted to the Division prior to any use of the rates.
B. Component Rates As permitted by § 10-10-109 (2.5)(c), C.R.S., rates for certain benefits and types of business have been established by the Commissioner after giving due consideration to the individual components listed in that section of law. With the exception of the exemptions provided by Section 12.A. and C., and Appendix A of this regulation, all insurers shall use premium rates that are no higher than the rates listed in Appendix A. The premium rates in Appendix A shall be used for all coverages or certificates issued in this state on or after the effective date of this regulation.
An insurer may at any time use rates lower than those rates listed in Appendix A. The rates in Appendix A, when used in accordance with the provisions of this Section 12.B., are deemed to be reasonable in relation to the benefits provided and are not excessive, inadequate, or unfairly discriminatory.
The rates for the specific plans included in Appendix A are subject to the following maximum conditions:
1. Credit life insurance shall contain no exclusions other than those listed in Section 6.F. of this regulation.2. Credit insurance may include an age restriction providing that no insurance need to be offered to debtors over 65 on the effective date or over 66 on the scheduled maturity date of the debt. In the case of loans, such as revolving credit loans, which have no scheduled maturity date of the debt, credit insurance shall be offered to all debtors not older than the attained age of 66. The premium rate to all debtors eligible for coverage shall be the same regardless of age. Coverage may be terminated upon the debtor's attainment of a specified age not less than 66.3. Credit accident and health insurance shall contain no exclusions other than those listed in Section 6.G. of this regulation.4. Credit property insurance shall cover all perils excluding theft without evidence of forced entry.5. The rates for credit life insurance and credit disability insurance do not apply to credit union accounts.C. Rating for Other Benefits Rates for benefits and plans that are materially different than those listed in Section 12.B., shall be rated in accordance with the loss ratio standard of Section 12.D. In determining whether a particular benefit or plan is materially different from the plans listed in Section 12.B., the Commissioner will give consideration to such justification as the insurer may submit. Such justification may include, but need not be limited to the following: The amount of the benefit in relation to the amount of the insured loan balance; the use or nonuse of exclusionary or retroactive waiting periods; the age of the debtor or debtors; the degree of underwriting used; the coverage or exclusion of causes of loss; or the coverage of risks other than those set forth in this regulation.
D. Loss Ratio Standard 1. All rate or rating plan filings subject to Section 12.D., shall demonstrate compliance with the 40% loss ratio standard and shall be certified by a qualified actuary.2. In evaluating such filings, the Commissioner will give consideration to such justification as the insurer may submit. Such justification may include, but need not be limited to, relevant available mortality, morbidity, bodily injury, unemployment data pertaining to the debtors of a creditor or a class or classes of debtors of a creditor or creditors, previous experience of the same or similar plans of insurance or group of creditors, debtors, or an analysis of the credibility of such data. Use of the credibility standard as promulgated or produced by the National Association of Insurance Commissioners (NAIC) are expressly permitted, but not required.3. The benefits provided to Colorado policy and contract holders by the coverage shall be reasonable in relation to the premium rates charged and shall be such that the 40% loss ratio standard of § 10-10-109 (2.5)(b), C.R.S., may be reasonably expected to be met or exceeded. Rates and rating data for all benefit types shall accurately reflect the benefits provided.4. Separate rates by age are allowable.5 Coverage may be limited to debtors aged 65 and younger or age 66 on the scheduled maturity date of the indebtedness.6 In the case of open-ended loans, coverage shall be provided or offered to all debtors not older than attained age 65, and coverage may be canceled or reduced upon attainment of not less than age 66 by giving notice thirty (30) days prior to such cancellation or reduction.E. Rate Filing Requirements 1. All rate filings shall be filed electronically in a format made available by the Division, unless exempted by rule for an emergency situation as determined by the Commissioner. a. The appropriate SERFF TOI/Sub-TOI codes shall be applied to the filing when creating the SERFF filing.b. The Form Schedule tab in SERFF shall be completed for all credit health rate filings. This tab shall list all policies, riders, endorsements, or certificates affected by the rate filing. Actual forms shall not be attached to the rate filing. This requirement does not apply to property and casualty credit rate filings.c. The "Effective Date Requested" field on the General Information tab in SERFF for a health credit filing or the "Effective Date Requested" field for a property and casualty credit filing shall be completed with a specific prospective date. Using a notation such as "On Approval" or "Upon Approval" are not valid responses.2. When a carrier is using their own company-developed rates for credit insurance, the company is required to submit a complete rate filing including an actuarial memorandum, which shall include, at a minimum: a. Experience of earned premiums, incurred losses and calculated loss ratios for the prior three (3) years, or all available experience, if less than three (3) years. Rates and rating data shall be based on Colorado data to the extent that it is credible. This may also include analysis of credibility, and use of collateral data such as company experience in other states for similar policies, industry experience, mortality tables or morbidity tables.b. Target or expected loss ratio. The loss ratio shall be supported by general and administrative expenses supporting the target or expected loss ratio and shall demonstrate compliance with the loss ratio standard.c. Loss settlement and adjustment expenses.d. Reasonable creditor compensation (commission schedule).f. The manner in which premiums are charged.g. Other acquisition costs.j. Regulatory license fees and fund assessments.k Reasonable insurer profit.l. Quantification of any benefit changes.m. Other relevant data consistent with generally accepted actuarial standards. Any additional supporting documentation to support the rate development.n. Analysis of credibility and use of collateral data such as company experience in other states for similar policies, industry experience, mortality tables or morbidity tables.o. Demonstration of compliance with the loss ratio standard.p. Certification of a qualified actuary.37 CR 11, June 10, 2014, effective 7/1/201437 CR 12, June 25, 2014, effective 7/15/2014Colorado Register, Vol 37, No. 14. July 25, 2014, effective 8/15/201437 CR 23, December 10, 2014, effective 1/1/201538 CR 03, February 10, 2015, effective 3/15/201538 CR 06, March 25, 2015, effective 4/30/201538 CR 09, May 10, 2015, effective 6/1/201538 CR 13, July 10, 2015, effective 7/30/201538 CR 19, October 10, 2015, effective 11/1/201538 CR 21, November 10, 2015, effective 1/1/201638 CR 23, December 10, 2015, effective 1/1/201639 CR 01, January 10, 2016, effective 2/1/201639 CR 05, March 10, 2016, effective 4/1/201639 CR 08, April 25, 2016, effective 5/15/201639 CR 19, October 10, 2016, effective 11/1/201639 CR 20, October 25, 2016, effective 1/1/201739 CR 22, November 25, 2016, effective 1/1/201739 CR 23, December 10, 2016, effective 1/1/201739 CR 23, December 25, 2016, effective 1/1/201740 CR 03, February 10, 2017, effective 3/15/201740 CR 09, May 10, 2017, effective 6/1/201740 CR 15, August 10, 2017, effective 9/1/201740 CR 17, September 10, 2017, effective 10/1/201740 CR 21, November 10, 2017, effective 12/1/201741 CR 04, February 25, 2018, effective 4/1/201841 CR 05, March 10, 2018, effective 6/1/201841 CR 08, April 25, 2018, effective 6/1/201841 CR 09, May 10, 2018, effective 6/1/201841 CR 11, June 10, 2018, effective 7/1/201841 CR 15, August 10, 2018, effective 9/1/201841 CR 17, September 10, 2018, effective 10/1/201841 CR 18, September 25, 2018, effective 10/15/201841 CR 21, November 10, 2018, effective 12/1/201841 CR 23, December 10, 2018, effective 1/1/201942 CR 01, January 10, 2019, effective 2/1/201941 CR 19, October 10, 2018, effective 3/1/201942 CR 03, February 10, 2019, effective 4/1/201942 CR 04, February 25, 2019, effective 4/1/201942 CR 06, March 25, 2019, effective 6/1/201942 CR 08, April 10, 2019, effective 6/1/201942 CR 15, August 10, 2019, effective 9/1/201942 CR 17, September 10, 2019, effective 10/1/201943 CR 02, January 25, 2020, effective 12/20/201943 CR 02, January 25, 2020, effective 12/23/201942 CR 23, December 10, 2019, effective 1/1/202043 CR 01, January 10, 2020, effective 2/1/202042 CR 24, December 25, 2019, effective 2/2/202043 CR 06, March 25, 2020, effective 4/15/202043 CR 10, May 25, 2020, effective 8/1/202043 CR 14, July 25, 2020, effective 8/15/202043 CR 17, September 10, 2020, effective 10/1/202043 CR 18, September 25, 2020, effective 11/1/202043 CR 22, November 25, 2020, effective 12/15/202043 CR 24, December 25, 2020, effective 1/15/202144 CR 03, February 10, 2021, effective 3/15/202144 CR 08, April 25, 2021, effective 5/15/202144 CR 09, May 10, 2021, effective 6/1/202144 CR 10, May 25, 2021, effective 6/14/202144 CR 10, May 25, 2021, effective 6/15/202144 CR 13, July 10, 2021, effective 8/1/202144 CR 15, August 10, 2021, effective 9/1/202144 CR 19, October 10, 2021, effective 11/1/202144 CR 21, November 10, 2021, effective 12/1/202144 CR 23, December 10, 2021, effective 12/30/202144 CR 21, November 10, 2021, effective 1/1/202244 CR 23, December 10, 2021, effective 1/15/202244 CR 24, December 25, 2021, effective 1/15/202245 CR 03, February 10, 2022, effective 3/2/202245 CR 08, April 25, 2022, effective 5/30/202245 CR 09, May 10, 2022, effective 5/30/202245 CR 10, May 25, 2022, effective 6/14/202245 CR 11, June 10, 2022, effective 6/30/202245 CR 11, June 10, 2022, effective 7/15/202245 CR 19, October 10, 2022, effective 11/1/202245 CR 20, October 25, 2022, effective 11/14/202245 CR 21, November 10, 2022, effective 11/30/202245 CR 24, December 25, 2022, effective 1/14/202346 CR 01, January 10, 2023, effective 2/14/202346 CR 06, March 25, 2023, effective 2/15/202346 CR 03, February 10, 2022, effective 3/2/202346 CR 04, February 25, 2023, effective 3/17/202346 CR 05, March 10, 2023, effective 4/15/202346 CR 09, May 10, 2023, effective 5/30/202346 CR 09, May 10, 2023, effective 6/1/202346 CR 10, May 25, 2023, effective 6/15/202346 CR 11, June 10, 2023, effective 6/30/2023