Where: n = number of months of coverage
t varies from 1 to n
(This formula calculates the present value of monthly premiums for each month of the term of the loan. The present values are then accumulated to determine the single premium.)
Monthly Premium = MP X | Inst |
1000 |
Where: | MP is the Closed End Monthly Premium per $1000 of scheduled outstanding balance of the indebtedness from TABLE 1 in § 2248.47. |
Inst is the lesser of the scheduled principal balance of the debt outstanding for month "t" (not including delinquencies or unearned finance charges) or the amount of insurance for month t (for partial coverage). |
Monthly Premium = MP X | Inst |
1000 |
Where: | MP is the Open End Monthly Premium per $1000 of scheduled outstanding balance of the indebtedness from TABLE 1 in § 2248.47. |
Inst the scheduled principal balance of the debt outstanding for month "t" (not including delinquencies or unearned finance charges) or the amount of insurance for month t provided for in the policy or certificate, if less. |
The balance to which the rate is applied may be computed on the same basis as that used to compute interest charges on the debt.
Cal. Code Regs. Tit. 10, § 2248.34
2. Amendment of NOTE filed 10-2-2001; operative 10-1-2001. Submitted to OAL for printing only pursuant to Government Code section 11340.9(g) (Register 2001, No. 40).
Note: Authority cited: Sections 779.21 and 779.36, Insurance Code. Reference: Sections 779.4, 779.9, 779.13, 779.16 and 779.36, Insurance Code; Sections 18191, 18290- 18292, 22458.1, 22458.2 and 24458.1, Financial Code; and Credit Insurance General Agents Association v. Payne, (1976) 16 Cal.3d 651.
2. Amendment of Note filed 10-2-2001; operative 10-1-2001. Submitted to OAL for printing only pursuant to Government Code section 11340.9(g) (Register 2001, No. 40).