Date:September 25, 2002
To:All Insurers Authorized to Write Credit Life and/or Credit Accident and Sickness Insurance
From:Connie L. O'Connell
Subject:Revised Prima Facie Credit Life and Credit Accident and Sickness Insurance Rates

Section Ins 3.25 (13) (c), Wis. Adm. Code, provides on or before October 1, 1990, and each three years after that, the Commissioner shall give written notice to all authorized insurers specifying the prima facie rates to be effective for the three-year period beginning on the next January 1.

The periodic adjustments of the credit life rates are only based on differences in claim costs. The result is a new basic loss ratio that fulfills the presumption that benefits are reasonable to the premiums charged, as required by s. 424.209 (1), Wis. Stat. Therefore, please consider this bulletin as written notice of the new basic loss ratio of 38% for credit life insurance and the new prima facie rates for credit life and credit accident and sickness insurance to become effective for the three-year period beginning on January 1, 2003.

Prima Facie Credit Life Insurance Premium Rates (Did Not Change):

Single premium straight-line decreasing single life insurance--$0.37 per annum per $100 of initial insured indebtedness

Single premium level life insurance on a single life--$0.68 per annum per $100 of initial insured indebtedness

Monthly premium rate on the outstanding insured balance basis for term insurance on a single life--$0.570 per month per $1,000 of outstanding insured indebtedness

Joint life insurance-167% of the corresponding single life premium rate, which develops corresponding joint life rates of:

Joint uniformly decreasing term--$0.62 per annum per $100 of initial insured indebtedness

Joint level life--$1.14 per annum per $100 of initial insured indebtedness

Joint monthly outstanding balance--$0.952 per month per $1,000 of outstanding insured indebtedness

Prima Facie Credit Accident and Sickness Premium Rates:

14-Day Retroactive Coverage-Multiply the existing prima facie rates by an adjustment factor of .93, rounded to the nearest cent

14-Day Nonretroactive Coverage-Multiply the existing prima facie rates by an adjustment factor of 1.23, rounded to the nearest cent

30-Day Retroactive Coverage-Multiply the existing prima facie rates by an adjustment factor of .70, rounded to the nearest cent

30-Day Nonretroactive Coverage-Multiply the existing prima facie rates by an adjustment factor of .94, rounded to the nearest cent

A table of revised credit accident and sickness rates is provided in pdf format below for your convenience. Note: You will need an Adobe Acrobat Reader to view or print the table listed below, which you can download at no cost from Adobe .

Credit Disability Insurance
Single Premium Rates Per $100 of Initial
Insured Indebtedness (opens in new window)

Any questions regarding the calculation of the prima facie premium rates should be directed to Jerry DeArmond at (608) 267-3558. Questions regarding policy form requirements should be directed to Jamie Sanftleben at (608) 267-1234. Thank you for your cooperation.