(a) The standards and principles for the application of the rates set forth in 23 CAR § 83-106 are as follows:

1. (1) The initial amount of insured indebtedness to which the rate is applied shall not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness;
2. (2) The indebtedness is repayable in substantially equal monthly installments during the period of coverage;

3. (3)

   1. (A) The rates for premiums payable on other than a single premium basis shall be the actuarial equivalent of the rates set forth in 23 CAR § 83-106.
   2. (B) Such premium rates will be deemed the actuarial equivalent of the foregoing single premium rates if such rates produce a total premium for any duration and amount of insurance equal to the corresponding single premium for the same duration and amount of insurance; and

4. (4) The credit disability insurance contract:

   1. (A) Does not cover disabilities resulting from preexisting:

(i) Illness;

1. (ii) Disease; or

   1. (iii) Physical condition;

   2. (B) May require:

      1. (i) Submission of evidence of insurability; and
      2. (ii) That the debtor be in gainful employment at the time the insurance becomes effective; and

   3. (C) Contains no exclusions other than:

      1. (i) Disability resulting from normal pregnancy;
      2. (ii) Intentionally self-inflicted injuries;
      3. (iii) Foreign travel or residence;
      4. (iv) Flight in nonscheduled aircraft;
      5. (v) War; or
      6. (vi) Military service.