Nebraska Department of Insurance

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RATES

Effective January 1, 1994, the following prima facie credit life insurance and credit accident and health insurance rates will replace those adopted January 1, 1968. These rates will apply to all credit life insurance and credit accident and health insurance premiums collected beginning January 1, 1994.

Credit Accident and Health Insurance (Rates per $100 original indebtedness)
Years	14-Day Retro	14-Day Elim	30-Day Retro	30-Day Elim
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15	$2.00 2.70 3.40 3.85 4.20 4.55 4.90 5.25 5.60 5.95 6.30 6.65 7.00 7.35 7.70	$1.35 1.90 2.35 2.70 3.00 3.30 3.60 3.90 4.20 4.50 4.80 5.10 5.40 5.70 6.00	$1.35 1.90 2.35 2.70 3.00 3.30 3.60 3.90 4.20 4.50 4.80 5.10 5.40 5.70 6.00	$ .75 1.05 1.30 1.50 1.65 1.80 1.95 2.10 2.25 2.40 2.55 2.70 2.85 3.00 3.15

LOSS RATIO

By law, benefits provided by credit life insurance and credit accident and health insurance policies must be reasonable in relation to the premium charged. This requirement is satisfied if the premium rate charged develops or may reasonably be expected to develop a loss ratio of not less than 50%.

The above rates or any lower rates shall be presumed to satisfy this general standard, and may be used without filing with the Nebraska Department of Insurance.

DEVIATIONS

Any upward deviation from these rates must be filed with the Nebraska Department of Insurance and must be supported to the satisfaction of the Director of Insurance by appropriate, adequate and credible experience and other statistical data showing that the benefits provided are reasonable in relation to the premium charged.

1. For credit life deviations, the following rules will apply:
   
   
   1. Credit life deviations will be allowed by the three basic categories of credit life business, i.e. decreasing term, outstanding balance or level term.
      
      
   2. No deviation will be allowed for any category unless a company's loss ratio for all of its Nebraska credit life business over the past three years is greater than 50%.
      
      
   3. No deviation will be allowed for any category unless a company's loss ratio for all of its Nebraska credit life business in the requested category over the past three years is greater than 55%.
      
      
   4. If a deviation is granted under the above rules, any category of credit life business for which the company has a loss ratio of less than 45% for its Nebraska business in that category over the past three years, the company must file reduced rates for that category, in order to raise the loss ratio for that category to at least 45%.
      
      
2. For credit disability deviations, the following rules will apply:
   
   
   1. Credit disability deviations will be allowed by the four basic categories of credit disability business, i.e., 14-Day Retroactive, 14-Day Elimination, 30-Day Retro-active, and 30-Day Elimination.
      
      
   2. No deviation will be allowed for any category unless a company's loss ratio for all of its Nebraska credit disability business over the past three years is greater than 50%.
      
      
   3. No deviation will be allowed for any category unless a company's loss ratio for all of its Nebraska credit disability business in the requested category over the past three years is greater than 55%.
      
      
   4. If a deviation is granted under the above rules, any category of credit disability business for which the company has a loss ratio of less than 45% for its Nebraska business in that category over the past three years, the company must file reduced rates for that category, in order to raise the loss ratio for that category to at least 45%.
      
      

Any deviations granted under the above rules for either credit life or credit disability will be allowed to remain in effect for three years. An insurer may file for a new rate before the end of a rate period, but not more often than once during any twelve-month period.

Commissions payable for deviated rates may not be any greater than those payable for the prima facie rates.

EXPERIENCE REVIEW AND RATE ADJUSTMENT

The Director of Insurance will, on a triennial basis, review the experience for the previous three years and adjust the prima facie rates as necessary.

ROBERT G. LANGE

Acting Director of Insurance