Date:October 21, 1999
To:All Insurers Authorized to Write Credit Life and/or Credit and Sickness Insurance
From:Connie O'Connell, Commissioner of Insurance
Subject:Revised Prima Facie Credit Life and Credit Accident and 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. In 1995 the credit life insurance standards were modified to require the use of expense components beginning January 1, 1996, and the credit life rates adopted at that time were made effective until December 31, 1999, to keep future credit life and credit accident and sickness rate reviews and possible rate adjustments concurrent. The periodic adjustments of the credit life rates are now only based on differences in claim costs which will result in a new basic loss ratio that fulfills the presumption that benefits are reasonable to the premiums charged as required by changes made to s. 424.209 (1), Wis. Stat., by 1994 Act 325. Therefore, please consider this bulletin as written notice of the new basic loss ratio of 39% 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, 2000.

Prima Facie Credit Life Insurance Premium Rates:

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 Premium Rates:

The current rates included in our last bulletin dated September 30, 1996, for the period ending December 31, 1999,

14-Day Retroactive Coverage-Multiply the existing rates by an adjustment factor of .85, rounded to the nearest cent

14-Day Nonretroactive Coverage-Multiply the existing rates by an adjustment factor of .85, rounded to the nearest cent

30-Day Retroactive Coverage-Multiply the existing rates by an adjustment factor of .85, rounded to the nearest cent

30-Day Nonretroactive Coverage-Multiply the existing rates by an adjustment factor of .85, rounded to the nearest cent

Tables of revised rates are attached for your convenience.

Note: You will need an Adobe Acrobat Reader to view or print the tables 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 foregoing prima facie premium rates should be directed to David Heineck at (608) 266-0095. Thank you for your cooperation.