Okla. Admin. Code § 365:10-5-67

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

Section 365:10-5-67 - Deviation procedures

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

(1) Allow deviation by case;

(2) Prescribe the form therefore;

(3) Determine case rate;

(4) Establish an effective period of case rate;

(5) Provide for case rate where the case ratio is above or below the acceptance range to establish minimum changes; and

(6) Define certain terms.

(b)Deviations.

(1) Notwithstanding the determination by the Commissioner of presumptively reasonable rates which are conclusively presumed reasonable in relation to the benefits of a policy providing coverage to which the rates are applicable, an insurer may file for approval of and use rates that are higher than the presumptively reasonable premium rates for credit life insurance or for credit accident and health insurance if it can be demonstrated that the benefits will be reasonable in relation to the premium charge and actuarially consistent with the presumptively reasonable rates and standard benefit plans.

(2) The insurer may file deviated rates for approval that will be:

(A) Applied uniformly to all accounts of the insurer; or

(B) Applied on an equitable basis approved by the Commissioner to only one or more accounts of the insurer for which the experience has been more favorable or less favorable than expected; or

(C) Applied according to a case-rating procedure on file with the Commissioner; or

(D) Applied according to the case-rating procedure set forth in (k) of this section.

(3) An insurer may at any time use a rate for an account that is lower than the filed rate applicable to that account without notice to the Commissioner.

(4) A deviated rate will be in effect for a period not longer than three (3) years. An insurer may file for a new rate before the end of the three (3) year period, but not more often than once during any twelve-month period.

(5) If an account for which a higher rate is approved changes insurers, the rate approved to be used for that account by the prior insurer is the maximum rate that may be used by any succeeding insurer for the remainder of the rate period applicable to the prior insurer, or until a new rate is filed for use with the account, if sooner.

Okla. Admin. Code § 365:10-5-67

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