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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