Md. Code Regs. 31.13.03.10

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.13.03.10 - Prima Facie Premium Rates for Credit Involuntary Unemployment Insurance

A. Prima Facie Single Premium Rates. The premiums charged for credit involuntary unemployment insurance policies having all policy provisions not less favorable to the insured debtor than those required by Regulation .l1 of this chapter may not exceed, on policies of credit involuntary unemployment insurance for which a single premium is charged in advance for the entire duration of the insurance and the indebtedness is repayable in equal installments, the amount shown in the table below for each $10 of the monthly benefit insured:

(1) Prima Facie Single Premium Rates per $10 of Monthly Benefit Payable

Number of Months in Which Indebtedness is Repayable	Benefits Retroactive 30 Day Waiting Period Maximum Number of Benefits Per Occurrence
	6	9	12	18	24
9	$ 1.276	$	$	$	$
12	1.816	2.185
24	3.926	4.862	5.466	6.216
36	5.964	7.447	8.443	9.687	10.584
48	7.933	9.943	11.318	13.039	14.307
60	9.833	12.353	14.095	16.276	17.902
72	11.668	14.680	16.776	19.401	21.373
84	13.441	16.928	19.364	22.420	24.725
96	15.152	19.098	21.864	25.334	27.962
108	16.805	21.194	24.279	28.149	31.088
120	18.401	23.218	26.610	30.864	34.107

(2) Prima Facie Single Premium Rates per $10 of Monthly Benefit Payable

Number of Months in Which Indebtedness Is Repayable	Benefits not Retroactive 30 Day Elimination Period Maximum Number of Benefits per Occurrence
	6	9	12	18	24
9	$ 0.950	$	$	$	$
12	1.352	1.566
24	2.923	3.485	3.834	4.303
36	4.441	5.337	5.923	6.706	7.311
48	5.906	7.126	7.940	9.027	9.882
60	7.321	8.854	9.887	11.268	12.366
72	8.688	10.522	11.768	13.432	14.763
84	10.008	12.113	13.584	15.521	17.079
96	11.282	13.688	15.338	17.539	19.315
108	12.512	15.191	17.032	19.488	21.474
120	13.700	16.641	18.667	21.369	23.559

B. Prima Facie Monthly Premium Rates.

(1) On policies of group credit involuntary unemployment insurance issued as monthly premium insurance, a monthly premium rate shall be used instead of the rates referred to in §A of this regulation.

(2) The rates under this plan may not exceed those shown in the schedule immediately below.

(3) The rate shall be applied to the amount of the monthly payment insured in that month regardless of the duration of the loan.

Prima Facie Monthly Premium Rates per $10 of Monthly Benefit Payable

Maximum Number of Monthly Benefits per Occurrence	Benefits Retroactive 30 Day Waiting Period	Benefits not Retroactive 30 Day Elimination
6	$0.184	$0.137
9	0.233	0.167
12	0.268	0.188
18	0.312	0.216
24	0.346	0.239

C. If a credit involuntary unemployment policy, otherwise meeting the requirements of Regulation .11 of this chapter, provides for payment of benefits in the event of family leave as defined in Regulation .04B(15) of this chapter, the insurer may charge a rate not to exceed 4 percent more than the rates in Regulations .09E, .10A or B, or .12B of this chapter.

D. The prima facie premium rates for credit involuntary unemployment benefit insurance in this regulation apply to all premiums charged on or after the effective date of this chapter, for every class of business.

E. Rates Per $100 Outstanding Balance Per Month.

(1) Rates stated as $0.xx per $100 outstanding balance per month shall be consistent with the above rates.

(2) For example, if a credit card requires a minimum payment of 5 percent of the balance, a rate of $0.40 per $10 of monthly benefit may also be stated as $0.20 per $100 of outstanding balance because $10 is 5 percent of $200.

(3) As another example, if the minimum required payment is 3 percent of the outstanding balance, the $0.40 per $10 of monthly benefit rates translates to $0.12 per $100 of outstanding balance.

(4) For purposes of this section, the following formula may be used:

M = R x 10 x P

If: M = monthly rate per $100 of outstanding balance,

R = rate per $10 of payment of term,

P = the percent of the outstanding balance required by the creditor as the minimum monthly payment, but not less than 3 percent.

Md. Code Regs. 31.13.03.10