§ 58-57-40. Credit life insurance rate standards.
§58‑57‑40. Credit life insurance rate standards.
(a) The premium ratestandards set forth below are applicable to plans of credit life insurance withor without requirements for evidence of insurability:
(1) Which contain noexclusions or no exclusions other than suicide; and
(2) Which contain no agerestrictions, or only age restrictions not making ineligible for the coverage
a. Debtors under 65 atthe time the indebtedness is incurred; or
b. Debtors who will nothave attained age 66 on the maturity date of the indebtedness.
(b) Rates for use withforms which are more restrictive in any material respect shall reflect suchvariations in the form or lower rates to the extent that a significantdifference in claim cost can reasonably be anticipated unless the insurerdemonstrates that such lower rate is not appropriate.
(c) If premiums arepayable in one sum in advance, for decreasing term life insurance onindebtedness repayable in substantially equal monthly installments, a premiumrate not exceeding sixty‑five cents (65¢) per one hundred dollars($100.00) of initial insured indebtedness per year is authorized. EffectiveJanuary 1, 1995, a premium rate not exceeding sixty cents (60¢) per one hundreddollars ($100.00) of indebtedness per year is authorized. Effective January 1,1996, a premium rate not exceeding fifty‑five cents (55¢) per one hundreddollars ($100.00) of indebtedness per year is authorized. Effective January 1,1997, a premium rate not exceeding fifty cents (50¢) per one hundred dollars($100.00) of indebtedness per year is authorized.
(d) The premium rate ofjoint life coverage shall not exceed one and two‑thirds (1 2/3) thepermitted single life rate.
(e) For level term lifeinsurance, a premium rate of one dollar and twenty‑five cents ($1.25) perone hundred dollars ($100.00) per year is authorized. Effective January 1,1995, a premium rate of one dollar and twenty cents ($1.20) per one hundreddollars ($100.00) per year is authorized. Effective January 1, 1996, a premiumrate of one dollar and fifteen cents ($1.15) per one hundred dollars ($100.00)per year is authorized. Effective January 1, 1997, a premium rate of onedollar and ten cents ($1.10) per one hundred dollars ($100.00) per year isauthorized.
(f) For policies forwhich monthly premiums are charged on a basis of the then‑outstandingbalances, a monthly premium per one thousand dollars ($1,000) of outstandingbalances is authorized, based on the following formula:
Opn = 20 SPn
n+ 1
where SPn = Singlepremium rate per one hundred dollars ($100.00) of initial insured indebtednessrepayable in n equal monthly installments.
Opn = Monthlyoutstanding balance premium rate per one thousand dollars ($1,000).
n = Original repayment period,in months.
(f1) Notwithstanding thepremium rates otherwise set forth in this section for credit life insurance,the premium rates for such insurance written in connection with direct loanswith contractual commitments of more than 10 years' duration shall be filedwith and approved by the Commissioner. Such premium rates shall exhibit areasonable relationship to the benefits provided.
(g) For credit lifeinsurance on a basis other than the foregoing, premiums charged shall beactuarially equivalent.
(h) In addition to thepremium rate authorized, a charge may also be made for a nonrefundableorigination fee per credit life insurance transaction as set forth below:
InsuredIndebtedness Fee Permitted
lessthan $250.00 none
$250.00or more but $1.00
lessthan $500.00
$500.00or more $3.00
No third or subsequentorigination fee may be charged in connection with a third or subsequentrefinancing within any twelve‑month period. (1975, c. 660, s. 1; 1987, c.826, ss. 4, 5, 13; 1991, c. 720, s. 91; 1993, c. 226, s. 7.)