Okla. Admin. Code § 365:10-5-63

Current through Vol. 42, No. 7, December 16, 2024

Section 365:10-5-63 - Filing and approval of forms and rates

(a)Purpose. The purpose of this Part is, with respect to credit life and credit accident and health insurance:

(1) Insure specificity of rates and forms;

(2) Reasonably relate benefits to premiums charged; and

(3) Provide for compliance of policies and applications.

(b)Submission of rate schedules. Every insurance company, when submitting a schedule or rates for consideration by the Commissioner, shall identify the rates to be used with the policy forms submitted for approval. In the alternative, specific reference in the case of each submission shall be made to the particular schedule of rates or portions thereof, which are applicable to the specific policy form.

(c)Reasonable relation of benefits to premium.

(1) Benefits provided by consumer credit insurance policies must be reasonable in relation to the premium charged. This requirement is satisfied if the premium rate or schedule of rates charged has been determined by the Commissioner to afford reasonable allowances for actual and expected loss experience, general and administrative expenses, reasonable creditor compensation, investment income, the manner in which premiums are charged, other acquisition costs, reserves, taxes, regulatory license fees and fund assessments, reasonable insurer profit and other relevant actuarial data. The rates shown in 365:10-5-64 shall be conclusively presumed to satisfy the foregoing requirements, and when calculated in the following manner shall be presumed reasonable: [(Claims Costs)+(General Insurer Expenses)] / [1+(Investment Income) - (Taxes) - (Compensation) - (Return on Equity)]

(2) To defray the initial cost of acquisition and processing the insurer may require a minimum total premium of Five Dollars ($5.00).

(d)Policies and applications. Any individual policy, application, group policy, group certificate, or notice of proposed insurance issued or delivered in this State shall be in full compliance with Oklahoma law and the rules of the Insurance Commissioner of the State of Oklahoma.

Okla. Admin. Code § 365:10-5-63

Amended at 14 Ok Reg 2650, eff 7-1-97