Section Ins 1201.07 - Determination of Reasonableness of Premiums in Relation to Benefits(a) Under RSA 408-A, premiums charged for credit insurance shall not be excessive in relation to benefits provided. This requirement shall be deemed to be satisfied if the premium rates to be charged are no greater than the rates specified in Ins 1201.18 and where the benefits provided correspond to those described in Ins 1201.08(c) and (d) or Ins 1201.09(d) and (e).(b) If any insurer files for approval any form providing coverage which varies from that for which nominal rates are specified in Ins 1201.08 and Ins 1201.09, the insurer shall demonstrate to the commissioner that:(1) The premium rates to be charged for such coverage are derived from actuarial assumptions equivalent to or consistent with the actuarial assumptions from which the closest comparable nominal rates were derived; and(2) Such premium rates can be expected to produce a loss ratio not less than the appropriate target loss ratio defined in Ins 1201.03.(c) If no specific charge is made to the debtor for credit insurance, the rate standards set forth in (a) and (b) above shall not be required to be used. For purposes of this paragraph, it shall be considered that the debtor is charged a specific amount for insurance if an identifiable charge for insurance is disclosed in the credit or other instrument furnished the debtor which sets out the financial elements of the credit transactions, or if there is a differential in finance, interest, service, or other similar charge made to debtors who are in like circumstances, except for their insured or non-insured status.(d) With respect to either credit life or credit accident and health insurance, if the creditor pays premiums on the single premium basis, and if the interest or finance charge in a credit transaction is computed on an amount which does not include the identifiable charge for such credit insurance, such identifiable charge shall be computed as follows: (1) Use the formulas in Ins 1201.08(b)(2) and Ins 1201.09(b)(1), eliminating from such formulas the expression: Click here to view image
(2) Then multiply such altered nominal rate by the appropriate actual premium rate factor specified in Ins 1201.18.N.H. Admin. Code § Ins 1201.07
#1900, eff 1-1-82; ss by #2441, eff 1-1-84; ss by #4287, eff 7-1-87; amd by #4369, eff 3-1-88; 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.