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304.19-080 Filing -- Effectiveness and withdrawal.
(1)
(2)
(3)
All such policies, certificates of insurance, notices of proposed insurance,
applications for insurance, indorsements and riders delivered or issued for
delivery in this state and the schedule of premium rates pertaining thereto shall
be filed with the commissioner.
All life insurance and all health insurance in connection with loans or other
credit transactions shall be subject to the provisions of this subtitle, except
health insurance in connection with a loan or other credit transaction of more
than five (5) years' duration or life insurance in connection with a loan or other
credit transaction of more than ten (10) years' duration; nor shall insurance be
subject to provisions of this subtitle where the issuance of such insurance is an
isolated transaction on the part of the insurer not relating to an agreement or a
plan for insuring debtors of the creditor; nor shall insurance issued for an
amount in excess of forty thousand dollars ($40,000) be subject to this subtitle.
(a) Credit life insurance. The premium rates set forth hereunder, or
actuarially equivalent, shall not exceed:
1.
For decreasing term credit life insurance, a single premium of sixty
cents ($0.60) per annum per one hundred dollars ($100) of
scheduled indebtedness, or sixty-five cents ($0.65) per annum per
one hundred dollars ($100) of scheduled indebtedness if
dismemberment benefits are included in the policy;
2.
Single premium rates for indebtedness repayable in monthly
installments other than twelve (12) in number shall not exceed
one-twelfth (1/12) of the above premium rate multiplied by the
number of full months in the scheduled period;
3.
A premium payable monthly at the rate of ninety-two cents ($0.92)
per one thousand dollars ($1,000) of outstanding unpaid insured
indebtedness or one dollar ($1) per one thousand dollars ($1,000) of
outstanding unpaid insured indebtedness if dismemberment benefits
are included in the policy, will be deemed the actuarial equivalent of
the foregoing rates; and
4.
For level term credit life insurance, a single premium of one dollar
and twenty cents ($1.20) per annum per one hundred dollars ($100)
of indebtedness or one dollar and thirty cents ($1.30) per one
hundred dollars ($100) of indebtedness if dismemberment benefits
are included in the policy.
(b) 1.
The standards set forth above are applicable to a plan of death
benefits with or without requirements for evidence of insurability
which contain no exclusions except for suicide; other exclusions
must receive the approval of the commissioner.
2.
Coverage shall be offered to all debtors regardless of age; or to all
debtors not older than the applicable age limit which shall be not
less than sixty-five (65) at the inception of the indebtedness or
sixty-six (66) at the scheduled maturity date of the transaction,
provided that each company's right to underwrite risks on an
individual basis shall not be restricted by this subparagraph.
Appropriate adjustments may be made with the approval of the
commissioner if premium rates are determined according to the age
of the insured debtor or by age brackets.
3.
Rates for use with forms which are more restrictive in any material
respect shall reflect such variations in lower rates. Similarly, forms
providing more extensive benefits than set forth above may carry
appropriately higher charges.
4.
The standards set forth above shall be applicable to contracts which
may contain a provision excluding or denying a claim for death,
resulting from pre-existing illness, disease or physical condition for
which the debtor received medical advice, consultation or treatment
during the twelve (12) month period immediately preceding the
effective date of the debtor's coverage and which would ordinarily be
expected to affect materially the debtor's health during the period of
coverage; provided, however, that after such coverage has been in
force for six (6) months (twelve (12) months for contracts of more
than three (3) years), this pre-existing exclusion clause shall not
operate to deny coverage for any death thereafter. The contract
shall contain no other provision which excludes or restricts liability in
the event of death caused in a certain specified manner, except
provisions excluding or restricting coverage in the event of
intentionally self-inflicted injuries, foreign travel or residence, flight in
nonscheduled aircraft, war or military service.
(4) (a) Credit health insurance. The following premium rates, or actuarially
equivalent rates, shall be charged for the coverages set forth hereunder:
Single Premium Per $100 of Initial Indebtedness
--------------------------------------------------------------------------------------------------------Nonretroactive Basis
Retroactive Basis
Number of Monthly
14-Day 30-Day
14-Day 30-Day
Installments
Wait
Wait
Wait
Wait
--------------------------------------------------------------------------------------------------------1-6 months
$ 1.51
$ .69
$2.02
.92
7-12 months
2.02
.91
2.69
1.22
13-19 months
2.50
1.56
3.33
2.08
20-24 months
2.93
1.84
3.91
2.45
25-30 months
3.28
2.34
4.37
3.12
31-36 months
3.85
2.77
5.14
3.70
37-48 months
4.77
3.67
6.36
4.89
49-60 months
5.68
4.58
7.58
6.11
-------------------------------------------------------------------------------------------------------(b) 1.
The standards set forth above shall be applicable to contracts which
may contain a provision excluding or denying a claim for disability,
resulting from pre-existing illness, disease or physical condition for
which the debtor received medical advice, consultation or treatment
during the twelve (12) month period immediately preceding the
effective date of the debtor's coverage and which would ordinarily be
(5)
(6)
(7)
expected to affect materially the debtor's health during the period of
coverage; provided, however, that after such coverage has been in
force for six (6) months (twelve (12) months for contracts of more
than three (3) years), this pre-existing exclusion clause shall not
operate to deny coverage for any disability commencing thereafter.
The contract shall contain no other provision which excludes or
restricts liability in the event of disability caused in a certain specified
manner, except provisions excluding or restricting coverage in the
event of pregnancy, intentionally self-inflicted injuries, foreign travel
or residence, flight in nonscheduled aircraft, war or military service.
2.
Coverage shall be offered to all debtors regardless of age, or to all
debtors not older than the applicable age limit which shall be not
less than sixty-five (65) at the inception of the indebtedness or
sixty-six (66) at the scheduled maturity date of the transaction,
provided that each company's right to underwrite risks on an
individual basis shall not be restricted by this subparagraph.
Appropriate adjustments may be made with the approval of the
commissioner if premium rates are determined according to the age
of the insured debtor or by age brackets.
3.
Rates for use with forms which are more restrictive in any material
respect shall reflect such variations in lower rates. Similarly, forms
providing more extensive benefits than set forth above may carry
appropriately higher charges.
Statistical reporting. Each insurer writing credit life or credit health insurance
within this state shall keep and maintain statistical data of its experience on
these kinds of insurance. The insurer shall, on or before May 1 of each year,
file with the commissioner its statistical experience data for the year ending
December 31 immediately preceding. Such experience shall be reported on
forms conforming to those now or hereafter from time to time adopted by the
National Association of Insurance Commissioners.
If a group policy has been delivered in this state before June 18, 1980, or has
been or is delivered in another state before or on or after June 18, 1980, the
insurer shall be required to file only the group certificate and notice of proposed
insurance delivered or issued for delivery in this state as specified in
subsections (2) and (4) of KRS 304.19-070, and such forms shall be approved
by the commissioner if they conform with the requirements specified in such
subsections and if the schedules of premium rates applicable to the insurance
evidenced by such certificate or notice are not in excess of the insurer's
schedules of premium rates filed with the commissioner. The premium rate in
effect on existing group policies may be continued until the first policy
anniversary date following June 18, 1980. After June 18, 1980, no borrower
shall be added to an existing group policy at rates higher than those set forth in
subsections (3) and (4) of this section.
The foregoing rates and procedures are deemed to be legislative prerogatives
and shall not be subject to administrative or executive change or modification.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1302, effective July 15, 2010. --
Amended 1984 Ky. Acts ch. 204, sec. 1, effective July 13, 1984. -- Amended
1982 Ky. Acts ch. 339, sec. 1, effective July 15, 1982. -- Amended 1980 Ky.
Acts ch. 363, sec. 3, effective July 15, 1980. -- Created 1970 Ky. Acts ch. 301,
subtit. 19, sec. 8, effective June 18, 1970.
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