Section Ins 1201.03 - Definitions(a) "Account" means the aggregate credit life insurance or credit accident and health insurance coverage for a single plan of benefits and for a single class of business written through a single creditor.(b) "Actual premium rate (APR)" means, with respect to each class of business and each plan of benefits, the maximum premium rate permitted to be charged by any insurer writing credit insurance in this state, whether it be new or renewed business, unless a rate deviation has been approved by the commissioner pursuant to Ins 1201.13.(c) "Actual premium rate factor (APRF)" means the factor resulting when the actual premium rate for any plan of benefits or any class of business as determined pursuant to this part is divided by the corresponding nominal rate for the same plan of benefits as shown under Ins 1201.08 or Ins 1201.09.(d) "Average number of life years" means the average number of group certificates or individual policies in force during the experience period, without regard to multiple coverage, times the number of years in the experience period for which experience is shown, or an equivalent calculation.(e) "Calendar year" means January 1 through December 31.(f) "Class of business" means any of the following: (2) Commercial and savings banks;(4) Motor vehicle dealers;(5) Other sales finance; and(g) "Commissioner" means "commissioner" as defined in RSA 408-A:2, III(f), namely the insurance commissioner of the state of New Hampshire.(h) "Credibility factor" means the extent to which the past experience of any given block of credit insurance business can be expected to recur in the future, and is found by reference to the credibility table as shown in Table 1200-1.(i) "Credit insurance" means both credit life and credit accident and health insurance, as defined in RSA 408-A:2, III(a).(j) "Creditor" means "creditor" as defined in RSA 408-A:2, III(c).(k) "Critical period coverage" means accident and health coverage where the insurance coverage benefit period is stated as a period certain not necessarily coterminous with the remaining term of a loan.(l) "Debtor" means "debtor" as defined in RSA 408-A:2, III(d).(m) "Earned premiums" means actual earned premiums, that is, the premiums earned at the premium rates actually charged and in force during the experience period in accordance with the instructions and method of calculation for reporting on Form A or Form B.(n) "Experience" means collectively all items of data which are shown on or reported on Form A or Form B as found on either a single Form A or Form B or any combination of the data from some or all Form A's and Form B's received.(o) "Experience period" means, as of the date an annual experience report is due pursuant to Ins 1201.11, the 3 most recently completed calendar years.(p) "Experience year" means any one of the 3 calendar years included in an experience period.(q) "Form A" means the credit insurer annual experience report described in Ins 1201.12(a).(r) "Form B" means the credit insurer annual experience report described in Ins 1201.12(b).(s) "Incurred claim count" means the number of claims incurred during the experience period.(t) "Incurred claims" means total claims paid during the experience period, adjusted for the change in the unreported claims and the claim reserve in accordance with the instructions and method of calculation for reporting on Form A or Form B.(u) "Indebtedness" means "indebtedness" as defined in RSA 408-A:2, III(e).(v) "Investment income" means the earnings derived from premium reserves arising out of single premiums charged the debtor.(w) "Nominal rates" means those rates not adjusted by actual premium rate factors.(x) "Plan of insurance" means: (1) Credit life insurance for each combination of: a. Single or joint lives;b. Single or outstanding balance premiums; andc. Decreasing or level coverage; and(2) Credit accident and health insurance for each combination of: a. Single or joint lives;b. Single or outstanding balance premiums;d. Retroactive or nonretroactive.(y) "Policy year" means the 12-month period beginning on a policy's anniversary date.(z) "Pro rata method" means a method using the ratio of the number of months remaining in the term of coverage to the total number of months of coverage.(aa) "Pure premium method" means the method used to calculate premium refunds for credit accident and health insurance described in Ins 1201.05(c).(ab) "Rule of 78" means the method used to calculate premium refunds for credit life insurance described in Ins 1201.05(b).(ac) "Target loss ratio (TLR)" means the standard used to establish the reasonableness of the relationship between benefits paid and premiums collected by an insurer.(ad) "Truncated gross indebtedness" means that the insurance coverage is based on the sum total of the payments necessary to amortize the loan and includes both principal and interest.(ae) "Truncated net indebtedness" means that the insurance coverage is based on the amount necessary to satisfy the loan obligation at any specific point in time.N.H. Admin. Code § Ins 1201.03
#1900, eff 1-1-82; ss by #2441, eff 1-1-84; ss by #4287, eff 7-1-87; ss by #5650, eff 7-1-93, EXPIRED 7-1-99
New. #7146, eff 4-1-00, EXPIRED: 4-1-08
New. #9611, eff 1-4-10
Amended by Volume XXXVIII Number 06, Filed February 8, 2018, Proposed by #12474, Effective 2/2/2018, Expires 2/2/2028.