Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-093 - CREDIT PROPERTY AND INVOLUNTARY UNEMPLOYMENT INSURANCE
Exhibit A - Credit Property Insurance

Universal Citation: AL Admin Code R A
Current through Register Vol. 42, No. 11, August 30, 2024

The dual interest rates applicable to credit property insurance when calculated on a net monthly outstanding balance basis shall be $2.35 per $1,000 of outstanding indebtedness per month. Inclusion of theft coverage on a dual interest basis shall allow an additional charge of $.65 per $1,000 of outstanding indebtedness per month. Single interest rates shall be 67% of the dual interest rates.

If premiums are payable on a single premium basis the following formula shall be used to develop single premium rates from the net monthly outstanding balance rates set forth above:

Sp = ((N+1)/20) X Op

where Sp is the single term premium per $100 of initial insured indebtedness, N is the credit term in months, and Op is the net monthly outstanding balance rate per $1,000 of outstanding indebtedness.

Author: Vincent R. Ledlow, Associate Counsel

Statutory Authority: Code of Ala. 1975, § 27-2-17.

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