§ 58-57-35. General premium rate standard.
§ 58‑57‑35. General premium rate standard.
(a) Benefits providedby credit life, credit accident and health and credit unemployment insurancewritten under this Article shall be reasonable in relation to the premiumcharge. This requirement is conclusively presumed to be satisfied if thepremium rates to be charged for credit life and credit accident and healthinsurance are no greater than those premium rates set forth in G.S. 58‑57‑40,58‑57‑45, and 58‑57‑105 for benefits as described inthose sections. If an insurer files premium rates for all or part of itsbusiness that are greater than those premium rates to which this conclusivepresumption applies, the greater rates may be disapproved by the Commissionerif the insurer fails to demonstrate that the benefits are reasonable inrelation to the premium rates filed for the group or groups of insureds towhich the premium rates would apply and which groups shall meet credibilitystandards established by the Commissioner. In making this determination, the Commissionershall give due consideration to the past and prospective loss experience of thegroup or groups of insureds to which the rates would apply, to reasonable costsand expenses attributable to the insurer and creditor making the coverageavailable and to other relevant factors, including a fair return to the insurerand creditor. These premium rates shall be allowed to be applied only to thegroup or groups with respect to which the rate filing is made and approved. Thepremium rates for credit unemployment insurance shall be filed with andapproved by the Commissioner. The amount charged to a debtor for any creditlife, credit accident and health, or credit unemployment insurance shall notexceed the premiums charged by the insurer, as computed at the time the chargeto the debtor is determined.
(b) The premium or costof credit life, disability, or unemployment insurance, when written by orthrough any lender or other creditor, its affiliate, associate or subsidiaryshall not be deemed as interest or charges or consideration or an amount inexcess of permitted charges in connection with the loan or credit transactionand any gain or advantage to any lender or other creditor, its affiliate,associate or subsidiary, arising out of the premium or commission or dividendfrom the sale or provision of such insurance shall not be deemed a violation ofany other law, general or special, civil or criminal, of this State, or of anyrule, regulation or order issued by any regulatory authority of this State.
(c) If premiums are tobe determined according to the age of the insured debtor or by age brackets, aninsurer may determine premium rates on a basis actuarially equivalent with therates provided in G.S. 58‑57‑35, but such rates shall be filed withand approved by the Commissioner.
(d) Premium rates forbenefits provided during a critical period shall be adjusted by a criticalperiod conversion ratio that reduces the rates giving recognition to theshorter benefit period provided. (1975, c. 660, s. 1; 1993, c. 226, s. 6; 2007‑298,s. 6.2; 2007‑484, s. 43.5.)