EXHIBIT B PRIMA FACIE RATES FOR CREDIT DISABILITY INSURANCE 1. If a debtor pays a single premium for coverage, the prima facie rate per $100 of initial debt for single disability is as set forth in Appendix A. 2. If premiums are paid on the basis of a monthly premium rate, per $1000 of outstanding insured gross debt, the insurer shall compute premiums according to the following formula or according to a formula approved by the Director and that produces rates that are actuarially equivalent to the single premium rates in paragraph (1) above: n OPn = (10 x SPn) / Σ [(v^(t-1)) x (n-t+1) / n] t=1 Where, SPn = Single life, single premium prima facie rate per $100, per annum of coverage of initial insured debt. OPn = Single life, monthly premium rate per $1000 of outstanding balance insured debt. n = The number of months in the term of the insurance coverage. V = 1/(1 + .0033) where the .0033 represents an annual discount rate of 4% for interest. 3. Rates for joint coverage shall not exceed 165% of the rates for single life coverage. 4. The outstanding balance rate may be either a term-specified rate or may be a single composite term outstanding balance rate.
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