TO: All Companies Writing Credit Life and Credit Accident and Health Insurance
FROM: Linda Ruthardt, Commissioner of Insurance
DATE: September 29, 1995
RE: Credit Insurance Sold by Motor Vehicle Dealers

Pursuant to M.G.L. c. 175, s. 117c (F) (2), I am required to review the combined experience of all insurers for the motor vehicle dealers class of business, and compute the appropriate rates for credit life and credit accident and health insurance sold through automobile dealers, for policies issued or renewed, commencing on January 1, 1996 through December 31, 1998.

The statutory prima facie rates for 1996-1998 for the motor vehicle class of business are:

  1. For credit life insurance, the nominal rates per one thousand dollars of insurance inforce per month shall be forty nine cents for single life insurance, and one hundred and sixty percent of said single life insurance rate for joint life insurance, or seventy eight cents.
  2. For credit accident and health insurance, single premium rates for each one hundred dollars of initial indebtedness shall be fifty nine cents per annum for each of the first four years of the term of coverage, forty two cents per annum for each of the next three years of the term of coverage and twenty one cents per annum for each year of coverage thereafter.