Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 3 - LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES
Subchapter FF - CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE
Division 3 - FILING AND APPROVAL OF FORMS AND RATES
Section 3.5202 - Reasonable Relation of Benefits to Premiums for Approved Deviations
Universal Citation: 28 TX Admin Code § 3.5202
Current through Reg. 50, No. 26; June 27, 2025
As the basic test of the reasonableness of the relation of benefits to the premium charges for approved deviations, to be applied separately by policy form number, it is hereby declared that the benefits of credit life insurance or credit accident and health insurance, individual or group, shall not be considered to be reasonable in relation to the premium charges, unless it can be reasonably anticipated that a loss ratio of "claims incurred" to "earned premiums" will, after the increase becomes effective, be no less than the following:
(1) Loss Ratios For Class E Only:
(A) credit
life--43%;
(B) credit accident and
health:
(i) 46% for Plans 10 - 14 and 22 - 26
on the Presumptive Premium Rate Chart found at §
3.5206 of this subchapter
(relating to Presumptive Premium Rates); and
(ii) 44% for Plans 16 - 19 on the Presumptive
Premium Rate Chart found at §
3.5206 of this
subchapter.
(2) Loss Ratios For All Other Classes:
(A) credit life--48%;
(B) credit accident and heath:
(i) 51% for Plans 10 - 14 and 22 - 26 on the
Presumptive Premium Rate Chart found at §
3.5206 of this subchapter;
and
(ii) 46% for Plans 16 - 19 on
the Presumptive Premium Rate Chart found at §
3.5206 of this
subchapter.
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