Section Ins 3.25 (13) (c), Wis. Adm. Code, provides on or before October 1, 1990, and each three years after that, the Commissioner shall give written notice to all authorized insurers specifying the prima facie rates to be effective for the three-year period beginning on the next January 1. In 1995 the credit life insurance standards were modified to require the use of expense components beginning January 1, 1996, and the credit life rates adopted at that time were made effective until December 31, 1999, to keep future credit life and credit accident and sickness rate reviews and possible rate adjustments concurrent. The periodic adjustments of the credit life rates are now only based on differences in claim costs which will result in a new basic loss ratio that fulfills the presumption that benefits are reasonable to the premiums charged as required by changes made to s. 424.209 (1), Wis. Stat., by 1994 Act 325. Therefore, please consider this bulletin as written notice of the new basic loss ratio of 39% for credit life insurance and the new prima facie rates for credit life and credit accident and sickness insurance to become effective for the three-year period beginning on January 1, 2000.
Prima Facie Credit Life Insurance Premium Rates:
Single premium straight-line decreasing single life insurance--$0.37 per annum per $100 of initial insured indebtedness
Single premium level life insurance on a single life--$0.68 per annum per $100 of initial insured indebtedness
Monthly premium rate on the outstanding insured balance basis for term insurance on a single life--$0.570 per month per $1,000 of outstanding insured indebtedness
Joint life insurance-167% of the corresponding single life premium rate, which develops corresponding joint life rates of:
Joint uniformly decreasing term--$0.62 per annum per $100 of initial insured indebtedness
Joint level life--$1.14 per annum per $100 of initial insured indebtedness
Joint monthly outstanding balance--$0.952 per month per $1,000 of outstanding insured indebtedness
Prima Facie Credit Accident Premium Rates:
The current rates included in our last bulletin dated September 30, 1996, for the period ending December 31, 1999,
14-Day Retroactive Coverage-Multiply the existing rates by an adjustment factor of
.85, rounded to the nearest cent
14-Day Nonretroactive Coverage-Multiply the existing rates by an adjustment factor of
.85, rounded to the nearest cent
30-Day Retroactive Coverage-Multiply the existing rates by an adjustment factor of
.85, rounded to the nearest cent
30-Day Nonretroactive Coverage-Multiply the existing rates by an adjustment factor of
.85, rounded to the nearest cent
Tables of revised rates are attached for your convenience.
Credit Disability Insurance Single Premium Rates Per $100 of Initial Insured Indebtedness
Any questions regarding the foregoing prima facie premium rates should be directed to David Heineck at (608) 266-0095. Thank you for your cooperation.