|Date:||September 30, 1996|
|To:||All Insurers Authorized to Write Credit Life and/or Credit Accident and Sickness Insurance|
|From:||Josephine W. Musser|
|Subject:||Prima Facie Credit Accident and Sickness Insurance Rates|
Section Ins 3.25 (13) (c), Wis. Adm. Code, provides that 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 premium rates to be effective for the three-year period beginning on the next January 1. Such rates are to be determined based on experience data submitted by all insurers for the immediately preceding three calendar years. The experience for years 1993, 1994, and 1995 indicates that no rate changes are required at this time. Therefore, pursuant to s. Ins 3.25 (13) (c), Wis. Adm. Code, please consider this bulletin as written notice that the current prima facie premium rates will continue to be effective for the three-year period beginning on January 1, 1997. Tables of current rates can be obtained by contacting this office.
As indicated in previous bulletins, the rates appearing in Appendix A in s. Ins 3.25, Wis. Adm. Code, are revised as follows:
14-Day Retroactive Coverage--Multiply the existing rates by adjustment factor of .88, rounded to the nearest cent
14-Day Retroactive Coverage--Multiply the existing rates by an adjustment factor of .94, rounded to the nearest cent
30-Day Retroactive Coverage--No change
30-Day Nonretroactive Coverage--No change
The revised prima facie credit life insurance premium rates provided in our bulletin of December 18, 1995, will continue to be effective for this same three-year period. These rates are:
Single premium straight-line decreasing single life insurance--$0.39 per annum per $100 of initial insured indebtedness
Single premium level life insurance on a single life--$0.72 per annum per $100 of initial insured indebtedness
Monthly premium rate on the outstanding insured balance basis for term insurance on a single life--$0.601 per month per $1,000 of outstanding insured indebtedness
Joint life insurance--167% of the corresponding single life prima facie rate, which develop corresponding joint life rates of:
Joint uniformly decreasing term--$0.65 per annum per $100 of initial insured indebtedness
Joint level life--$1.20 per annum per $100 of initial insured indebtedness
Joint monthly outstanding balance--$1.004 per month per $1,000 of outstanding insured indebtedness
These rates replace the corresponding rates in s. Ins 3.25 (14), Wis. Adm. Code.
Any questions regarding this bulletin should be directed to David Heineck at (608) 266-0095. Thank you for your cooperation.