(a) The Insurance Commissioner may presume that the benefits of a credit life insurance form are reasonable in relation to the premium charged if the premium or premium rate schedule for death benefits as filed with the commissioner and charged for the coverage does not exceed an amount equal or actuarially equivalent to the following maximum rates:

1. (1) Coverage on a single life provided on the outstanding indebtedness basis, one dollar ($1.00) per month per one thousand dollars ($1,000) of outstanding balance of insured indebtedness;

2. (2) Coverage on a single life provided by an individual or group policy on other than an outstanding indebtedness basis:

   1. (A) Sixty-five cents (65¢) per year of coverage per one hundred dollars ($100) of initial insured indebtedness for credit transactions when the insured indebtedness is repayable in substantially equal monthly installments during the term of coverage; and
   2. (B) One dollar and twenty cents ($1.20) per year of coverage per one hundred dollars ($100) of level term life insurance where the amount of insured indebtedness remains level during the term of coverage and is repayable in a single sum at the end of the term;
3. (3) Coverage on joint lives provided on the outstanding indebtedness basis, one dollar and seventy cents ($1.70) per month per one thousand dollars ($1,000) of outstanding balance of insured indebtedness;

4. (4) Coverage on joint lives provided by an individual or group policy on other than an outstanding indebtedness basis:

   1. (A) One dollar and ten cents ($1.10) per year of coverage per one hundred dollars ($100) of initial insured indebtedness is repayable in substantially equal monthly installments during the term of coverage; and
   2. (B) Two dollars and four cents ($2.04) per year of coverage per one hundred dollars ($100) of level term insurance where the amount of insured indebtedness remains level during the term of coverage and is repayable in a single sum at the end of the term; and
5. (5) No certificate fee, policy issue charge, or any charge other than the premium herein provided shall be made.

(b) The foregoing rate test in 23 CAR § 83-104 for the presumed reasonableness of benefits in relation to premiums is based upon the following requirements:

1. (1) That the credit life insurance contract:

   1. (A) May require:

(i) Submission of evidence of insurability;

1. (ii) That the debtor be in gainful employment at the time the insurance becomes effective; or

   1. (iii) Both; and

   2. (B) Contains no:

      1. (i) Conditions of coverage more restrictive than absence of misrepresentation if a health statement or evidence of insurability is required; and
      2. (ii) Exclusions other than for suicide (incontestable after two (2) years) and flight in nonscheduled aircraft; and

2. (2) That coverage is provided or offered to all debtors:

   1. (A) Regardless of age; or

   2. (B) Not older than the applicable limit, which shall not be less than the attained age of:

      1. (i) Sixty-five (65) years if such limit applies to the age when the insurance attached; or
      2. (ii) Sixty-six (66) years if such limit applies to the age on the scheduled maturity date of the debt.
      3. (c) If the premiums are determined according to age of the insured debtor or by age brackets, appropriate adjustments in the rate and premium may be made according to age, provided such adjustment is on a basis actuarially consistent with the foregoing rates when applied regardless of actual age at issue.
      4. (d)

3. (1)

   1. (A) The phrase "joint lives" means only spouses, business partners, comakers, guarantors, and endorsers, and such persons must be:

      1. (i) Jointly and severally liable for repayment of a single indebtedness; and
      2. (ii) Joint signers of the instrument of indebtedness.
   2. (B) Joint life coverage shall not be written covering more than two (2) lives.
   3. (C) Jointly indebted persons shall not be covered separately at single life rates.
4. (2) Joint life rates may not be charged for single life coverage.