MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Insurance

By: Representatives Stevens, Montgomery (74th), Robinson (84th)

AN ACT TO AMEND SECTION 83-53-23, MISSISSIPPI CODE OF 1972, TO REMOVE AUTHORITY OF AN INSURER TO HAVE DIFFERENT PREMIUM RATES FOR CERTAIN CREDIT LIFE INSURANCE COVERAGE; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 83-53-23, Mississippi Code of 1972, is amended as follows:

83-53-23. (1) Credit life insurance rates filed with the commissioner shall be considered reasonable:

(b) If the single premium rate for single life level term credit life insurance does not exceed a single premium rate of One Dollar and Sixty Cents ($1.60) per annum per One Hundred Dollars ($100.00) of insured indebtedness;

(c) If the monthly premium rate on single life credit life insurance on outstanding balances does not exceed a monthly premium of One Dollar and Thirty-three Cents ($1.33) per One Thousand Dollars ($1,000.00) of outstanding indebtedness;

(d) If the single premium rate for joint life decreasing term credit life insurance does not exceed One Dollar and Thirty-nine Cents ($1.39) per annum per One Hundred Dollars ($100.00) of initial insured indebtedness;

(e) If the single premium rate for joint life level term credit life insurance does not exceed Two Dollars and Eighty Cents ($2.80) per annum per One Hundred Dollars ($100.00) of insured indebtedness;

(f) If a monthly premium rate on joint life credit life insurance on outstanding balances does not exceed a monthly premium of Two Dollars and Thirty-four Cents ($2.34) per One Thousand Dollars ($1,000.00) of outstanding indebtedness;

(g) If the amount is a minimum premium not exceeding Two Dollars ($2.00).

(2) The foregoing life insurance rates are considered reasonable in relation to the benefits only if:

(a) The credit life insurance coverage must contain a suicide exclusion provision wherein no benefit shall be paid in case of suicide within the first twelve (12) months after the effective date of the coverage.

(b) Coverage is provided or offered to all debtors regardless of age, or to all debtors not older than the applicable age limit, which shall not be less than the attained age of sixty-five (65) years, if the limit applies to the age when the insurance attaches, or not less than attained the age of sixty-six (66) years if the limit applies to the age on the scheduled maturity date of the debt. Such aforementioned requirements provided by this subsection shall not prevent the usage of equitable underwriting standards to determine the eligibility of individual debtors as to a part or all of the coverage provided by the credit life insurance contract. Age and term limits, wherein the amount of insurance provided or offered varies by age, if used, must be clearly shown on the individual policies or group certificates.

(3) The following credit disability insurance premium rates filed with the commissioner shall be considered reasonable in relation to the benefits if the single premium rate for credit disability insurance does not exceed the premium rates shown in the following schedule per One Hundred Dollars ($100.00) of initial insured indebtedness.

NO. OF MONTHS NONRETROACTIVE BENEFITS RETROACTIVE BENEFITS

IN WHICH 14-DAY 30-DAY 14-DAY 30-DAY

INDEBTEDNESS NONRETROACTIVE NONRETRO- RETROACTIVE RETRO-

IS PAYABLE ACTIVE ACTIVE

1-12 2.50 2.10 3.00 2.85

13-24 3.30 2.90 3.80 3.65

25-36 4.10 3.70 4.60 4.45

37-48 4.90 4.50 5.40 5.25

49-60 5.70 5.30 6.20 6.05

61-72 6.10 5.70 6.60 6.45

73-84 6.50 6.10 7.00 6.85

85-96 6.90 6.50 7.40 7.25

97-108 7.30 6.90 7.80 7.65

109-120 7.70 7.30 8.20 8.05

Premiums payable other than on a single premium basis or for benefits on a basis different than illustrated above shall be actuarially consistent with the above rates.

(4) The foregoing disability rates are considered to produce reasonable benefits in relation to premiums only if:

(a) Coverage may be provided or offered to all debtors, who are gainfully employed on the effective date of insurance and who are not older than the applicable age limit, which shall not be less than the attained age of sixty-five (65) years, if the limit applies to the age when the insurance attaches, or not less than the attained age of sixty-six (66) years if the limit applies to the age on the scheduled maturity date of the debt. Such aforementioned requirements provided by this subsection shall not prevent the usage of equitable underwriting standards to determine the eligibility of individual debtors as to a part or all of the coverage provided by the disability insurance contract. Age and term limits, wherein the amount of insurance or term provided or offered varies by age, if used, must be clearly shown on the individual policies or group certificates;

(b) Coverage does not contain any exclusions except disabilities resulting from intentional self-inflicted injury, pregnancy, foreign residence, flights in nonscheduled aircraft and preexisting illness, disease or physical condition for which the debtor either: (i) knew the existence of such illness, disease or condition on the effective date, or (ii) received medical advice, consultation or treatment during the twelve-month period immediately preceding the effective date of the debtor's coverage.

(5) No certificate fee, policy issue charge, or any other charge other than the premium herein shall be made.

SECTION 2. This act shall take effect and be in force from and after July 1, 2000.