18 Del. Admin. Code § 1701-1.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 1701-1.0 - 50% Loss Ratio Benchmark

1.1 18 Del.C. § 3707(b) of the Delaware Insurance Laws authorizes the Insurance Commissioner to disapprove any credit life or credit health insurance form ". . . if the premium rates charged or to be charged are excessive in relation to benefits . . . . After review of such insurance transactions in the State of Delaware, and after careful analysis of the studies and recommendations of the National Association of Insurance Commissioners, it is hereby ruled that premium rates are not excessive in relation to benefits as provided for in 18 Del.C. § 3707(b), if an anticipated loss ratio of 50% is developed. NAIC Reporting Forms required to be filed annually will be used to determine if this standard is being met.