Minnesota Administrative Rules
Agency 120 - Commerce Department
Chapter 2761 - CREDIT INVOLUNTARY UNEMPLOYMENT INSURANCE
Part 2761.0700 - PREMIUM RATES
No policies of credit involuntary unemployment insurance issued after January 9, 1996, shall be at a rate in excess of that set forth in this part except that benefit plans different from these basic benefit plans are subject to prior approval pursuant to part 2761.1100.
Schedule A - Single Premium Advance System
Monthly Rates per $10 of Monthly Benefit Provided
Nonretroactive Benefits for a 30-Day Elimination Period | Retroactive Benefits for a 30-Day Elimination Period | |||
Benefits Period in months | 30-Day Waiting Period | 60-Day Waiting Period | 30-Day Waiting Period | 60-Day Waiting Period |
3 | $0.19 | $0.18 | $0.29 | $0.26 |
4 | 0.22 | 0.21 | 0.33 | 0.30 |
6 | 0.25 | 0.23 | 0.36 | 0.34 |
9 | 0.27 | 0.25 | 0.38 | 0.37 |
12 | 0.28 | 0.27 | 0.40 | 0.38 |
Single premium rates are determined by multiplying the above rates by the term of the loan in months.
Schedule B - Outstanding Balance System
Monthly Rates per $10 of Monthly Benefit Provided
Nonretroactive Benefits for a 30-Day Elimination Period | Retroactive Benefits for a 30-Day Elimination Period | |||
Benefits Period in months | 30-Day Waiting Period | 60-Day Waiting Period | 30-Day Waiting Period | 60-Day Waiting Period |
3 | $0.23 | $0.21 | $0.33 | $0.31 |
4 | 0.26 | 0.24 | 0.38 | 0.35 |
6 | 0.29 | 0.27 | 0.42 | 0.40 |
9 | 0.31 | 0.30 | 0.45 | 0.43 |
12 | 0.33 | 0.31 | 0.47 | 0.45 |
Rates stated as $0.xx per $100 outstanding balance per month should be consistent with the above rates. For example, if a credit card required a minimum payment of five percent of the balance, a rate of 40 cents per $10 of monthly benefit could also be stated as 20 cents per $100 of outstanding balance because $10 is five percent of $200. As another example, if the minimum required payment is three percent of the outstanding balance, the 40 cents per $10 of monthly benefit rate translates to 12 cents per $100 of outstanding balance. For purposes of this part, the following formula may be used:
rm = rt x 10p | |
Where: | rm = monthly rate per $100 of outstanding balance |
rt = rate per $10 of payment of term "t" | |
p = percent of outstanding balance required as | |
monthly payment expressed as a decimal |
Statutory Authority: MS s 45.023; 62B.12