A. Prima Facie Single Premium Rates. The premiums charged for credit involuntary unemployment insurance policies having all policy provisions not less favorable to the insured debtor than those required by Regulation .l1 of this chapter may not exceed, on policies of credit involuntary unemployment insurance for which a single premium is charged in advance for the entire duration of the insurance and the indebtedness is repayable in equal installments, the amount shown in the table below for each $10 of the monthly benefit insured:
(1) Prima Facie Single Premium Rates per $10 of Monthly Benefit Payable
|Number of Months in Which Indebtedness is Repayable||Benefits Retroactive 30 Day Waiting Period Maximum Number of Benefits Per Occurrence|
(2) Prima Facie Single Premium Rates per $10 of Monthly Benefit Payable
|Number of Months in Which Indebtedness Is Repayable||Benefits not Retroactive 30 Day Elimination Period Maximum Number of Benefits per Occurrence|
B. Prima Facie Monthly Premium Rates.
(1) On policies of group credit involuntary unemployment insurance issued as monthly premium insurance, a monthly premium rate shall be used instead of the rates referred to in §A of this regulation.
(2) The rates under this plan may not exceed those shown in the schedule immediately below.
(3) The rate shall be applied to the amount of the monthly payment insured in that month regardless of the duration of the loan.
Prima Facie Monthly Premium Rates per $10 of Monthly Benefit Payable
|Maximum Number of Monthly Benefits per Occurrence||Benefits Retroactive 30 Day Waiting Period||Benefits not Retroactive 30 Day Elimination|
C. If a credit involuntary unemployment policy, otherwise meeting the requirements of Regulation .11 of this chapter, provides for payment of benefits in the event of family leave as defined in Regulation .04B(15) of this chapter, the insurer may charge a rate not to exceed 4 percent more than the rates in Regulations .09E, .10A or B, or .12B of this chapter.
D. The prima facie premium rates for credit involuntary unemployment benefit insurance in this regulation apply to all premiums charged on or after the effective date of this chapter, for every class of business.
E. Rates Per $100 Outstanding Balance Per Month.
(1) Rates stated as $0.xx per $100 outstanding balance per month shall be consistent with the above rates.
(2) For example, if a credit card requires a minimum payment of 5 percent of the balance, a rate of $0.40 per $10 of monthly benefit may also be stated as $0.20 per $100 of outstanding balance because $10 is 5 percent of $200.
(3) As another example, if the minimum required payment is 3 percent of the outstanding balance, the $0.40 per $10 of monthly benefit rates translates to $0.12 per $100 of outstanding balance.
(4) For purposes of this section, the following formula may be used:
M = R × 10 × P
If: M = monthly rate per $100 of outstanding balance,
R = rate per $10 of payment of term,
P = the percent of the outstanding balance required by the creditor as the minimum monthly payment, but not less than 3 percent.