|Date:||October 1, 2008|
|To:||All Insurers Authorized to Write Credit Life and/or Credit Accident and Sickness Insurance|
|From:||Sean Dilweg, Commissioner of Insurance|
|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 43% 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, 2009.
Prima Facie Credit Life Insurance Premium Rates:
Single premium straight-line decreasing single life insurance$0.40 per annum per $100 of initial insured indebtedness
Single premium level life insurance on a single life$0.74 per annum per $100 of initial insured indebtedness
Monthly premium rate on the outstanding insured balance basis for term insurance on a single life$0.616 per month per $1,000 of outstanding insured indebtedness
Joint life insurance167% of the corresponding single life premium rate, which develops corresponding joint life rates of:
Joint uniformly decreasing term$0.67 per annum per $100 of initial insured indebtedness
Joint level life$1.24 per annum per $100 of initial insured indebtedness
Joint monthly outstanding balance$1.029 per month per $1,000 of outstanding insured indebtedness
Prima Facie Credit Accident and Sickness Premium Rates:
14-Day Retroactive CoverageMultiply the existing prima facie rates by an adjustment factor of .98, rounded to the nearest cent
14-Day Nonretroactive CoverageMultiply the existing prima facie rates by an adjustment factor of .68, rounded to the nearest cent
30-Day Retroactive CoverageMultiply the existing prima facie rates by an adjustment factor of .96, rounded to the nearest cent
30-Day Nonretroactive CoverageMultiply the existing prima facie rates by an adjustment factor of .74, 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 .
Before January 1 of the year the new rates become effective, insurers who use these rates are required to make a rate filing adopting these rates. No documentation is required. Use the NAIC uniform transmittal document to submit both initial rate filings and subsequent rate change filings. It is recommended that rate filings for credit life and disability be submitted at least 60 days before the requested effective date.
Any questions regarding this bulletin should be directed to Stephanie Cook at (608) 261-8563 or firstname.lastname@example.org. Thank you for your cooperation.