PURPOSE: This rule establishes a presumptively reasonable rate for credit unemployment insurance and sets out procedures for filing loss data.
- (1) In reviewing rates filed for credit unemployment insurance, the Department of Insurance shall presume that the benefits are reasonable in relation to the premium charged if the rates do not exceed two dollars ($2) per one thousand dollars ($1,000) of outstanding monthly indebtedness.
- (2) Any insurance company filing and proposing to use a rate greater than the rate in section (1) must furnish actuarial proof that the greater rate produces or may reasonably be expected to produce a loss ratio of at least sixty percent (60%).
- (3) Each insurance company writing credit unemployment insurance shall report on or prior to April 1 all credit unemployment insurance premium and loss information on the credit insurance experience exhibit of its annual statement. The report required by this section will not be used in any manner to determine the financial condition of the company; however, this report shall reconcile to the Missouri supplement to the page of the annual statement on which credit insurance business in the state of Missouri is recorded. Any discrepancies between the report required by this section and the page of the annual statement on which credit insurance business in the state of Missouri is recorded shall be explained by a signed statement attached to the report required by this section.
AUTHORITY: sections 374.045 RSMo Supp. 1997 and 375.041, RSMo 1994.* This rule was previously filed as 4 CSR 190-16.170. Original rule filed Aug. 28, 1986, effective Dec. 11, 1986. Amended: Filed Dec. 1, 1997, effective May 30, 1998.
*Original authority: 374.045, RSMo 1967, amended 1993, 1995 and 375.041, RSMo 1985, amended 1992.