# EXHIBIT B PRIMA FACIE RATES FOR CREDIT DISABILITY INSURANCE by umsymums38

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```									                                    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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