Current through Supplement No. 394, October, 2024
1.
Premium rate. Subject to the conditions and requirements in
subsection 2 and section 45-07-01.1-10, the prima facie rates shown below are
considered to meet the requirements of section 45-07-01.1-03 and may be used
without filing additional actuarial support.
a. Monthly outstanding balance basis:
Sixty-two cents per month per one thousand dollars of outstanding insured debt
on single life insurance and one dollar five cents per month per one thousand
dollars of outstanding insured debt on joint life insurance if premiums are
payable on a monthly outstanding balance basis.
b. Single premium basis: If the premium is
charged on a single premium basis, the rate shall be computed according to the
following formula or according to a formula approved by the commissioner which
produces rates substantially the same as those produced by the following
formula:
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Sp = Single premium per one hundred
dollars of initial consumer credit life insurance coverage.
Op = Sixty-two cents, the prima facie
consumer credit life insurance premium rate for monthly outstanding balance
coverage from subdivision a.
It = The scheduled amount of insurance
for month t.
Ii = Initial amount of insurance. For
a net insurance policy, Ii equals the initial principal
balance of the loan.
dis = .0028, representing an annual discount rate of three
percent for interest plus four-tenths percent for mortality.
n = The number of months in the term of the insurance.
c. If the benefits provided are
other than those described in the introduction to this subsection, premium
rates for such benefits shall be actuarially consistent with the rates provided
in subdivisions a and b.
d. If life
coverage is sold on a joint basis involving two people, the factor for
calculating the rate is 1.7.
2.
Conditions and requirements.
a. Coverage may exclude death resulting from:
(1) War or any act of war;
(2) Suicide within one year after the
effective date of the coverage;
(3)
A preexisting condition that causes or substantially contributes to death
within twelve months of the effective date of coverage; or
(4) Terminal illness with a life expectancy
of twelve months or less which was diagnosed prior to the effective date of
coverage.
b. The
effective date of coverage for that part of the insurance attributable to a
different advance or a charge to the plan account is the date on which the
advance or charge occurs.
c. An age
restriction may be included provided coverage continues until at least age
seventy.
d. Guaranteed issue
amount. An insurer must issue an amount up to five thousand dollars without
regard to a debtor's or creditor's health status. An amount in excess of five
thousand dollars may be denied based upon the company's underwriting
determination. An insurer may apply the exclusions set forth in subdivision a
to the entire amount.
