Section Ins 1201.08 - Nominal Rates for Credit Life Insurance(a) The premium rates in (b) below shall be used to determine the single lives credit life insurance earned premiums at the nominal rate level which are to be reported by each insurer pursuant to Ins 1201.11.(b) Where the insured portion of an indebtedness is repayable in equal monthly installments, the nominal premium rate for credit life insurance shall be as set forth in (1) and (2) below while subparagraphs (3) through (6) below shall apply to premium rates for other types of benefits either alone or in combination with the type of benefits applicable to (1) and (2) below:(1) If premiums are payable on a monthly outstanding balance basis, the nominal rate shall be $.74 per month per $1000 of outstanding indebtedness;(2) If premiums are payable on a single premium basis, the nominal rates stated under subparagraph (1) above shall be used to compute nominal single premium rates as the present value of the coverage cost as if the decreasing coverage was provided on an outstanding monthly balance basis throughout the term of coverage, as in the following formulae: e. Where "SPn" and "t SPn" mean "single premium rate" per $100 of initial indebtedness repayable in "n" equal monthly installments;f. Where "OP" means The nominal monthly outstanding "balance premium rate" per $1,000;g. Where "n" means "original repayment period", in months;h. Where "añ" means the present value at an interest rate of i for n monthly payments of $1.00, first payable at the end of the month;i. Where "i" means 1%, or the equivalent monthly compound interest rate associated with the covered loan; andj. Where "t" means the coverage period in months;(3) The nominal rate for level term life insurance shall be $.74 per month per $1000 if premiums are payable on a monthly outstanding balance basis;(4) If level term life insurance premiums are payable on a single premium basis, they shall be calculated as the present value of the coverage cost as if the level coverage was provided on an outstanding monthly basis throughout the term of coverage, as in the following formula: b. Where "LSPn" means "single premium rate" per $100 of initial indebtedness;c. Where "ãñ" means the present value at 1/2% per month of n monthly payments of $1.00, first payable immediately;d. Where "n" means the term of insurance, in months; ande. Where "OP" means $.74 per month per $1000;(5) A combination of the appropriate nominal rate for level term and the appropriate nominal rate for decreasing term, with equal decrements, shall be used if the coverage provided is a combination of level term and decreasing term, with equal decrements; and(6) If the benefits provided are other than those described in subparagraphs (1) through (5) above, the nominal rate for the benefits that are provided shall be the actuarial equivalent of the nominal rates stated in or determined by the above subparagraphs, (1) through (5).(c) The premium rates in paragraph (b) above shall apply to policies providing credit life insurance to be issued with or without evidence of insurability, to be offered to all debtors of a creditor.(d) The premium rates in paragraph (b) above shall contain: (1) No exclusions other than suicide within one year of the incurred indebtedness; and(2) Either no age restrictions or age restrictions that are no less favorable to insured debtors than age restrictions making ineligible for coverage debtors 65 or over at the time indebtedness is incurred or debtors having attained age 66 or over on the maturity date of the indebtedness.(e) An insurer may require that a debtor be actively-at-work at the time the indebtedness is incurred in order to be eligible for insurance.(f) If premiums are to be determined according to the age of the insured debtor or by age brackets, the nominal rates for each age or age bracket shall be derived by adjustments in the appropriate nominal rate stated in Ins 1201.08(b)(1) through (6) above so that the nominal rates arrived at will be actuarially consistent with the nominal rates set out in subsection (b)(1) through (6). All such rates shall be filed with and shall be approved by the commissioner, if actuarially consistent according to generally accepted actuarial principles, prior to use.(g) The premium rates for joint lives credit life insurance earned premiums at the nominal rate level shall be calculated by multiplying the single lives credit life insurance earned premiums by a factor of 1.55.N.H. Admin. Code § Ins 1201.08
#1900, eff 1-1-82; ss by #2441, eff 1-1-84; ss by #4287, eff 7-1-87; ss by #5650, eff 7-1-93, EXPIRED 7-1-99
New. #7146, eff 4-1-00, EXPIRED: 4-1-08
New. #9611, eff 1-4-10
Amended by Volume XXXVIII Number 06, Filed February 8, 2018, Proposed by #12474, Effective 2/2/2018, Expires 2/2/2028.