TO: All Insurers Writing Credit Life and Credit Accident and Health Insurance in Massachusetts that is Sold by Motor Vehicle Dealers
FROM: Nonnie S. Burnes, Commissioner of Insurance
DATE: October 23, 2007
RE: Deviated Case Rates for Credit Life and Credit Accident and Health Insurance Sold by Motor Vehicle Dealers Effective Between January 1, 2008 and December 31, 2010

Pursuant to M.G.L. c. 175, § 117C(b)C.(4)(iii), the Commissioner shall review the combined experience of all insurers writing credit life and credit accident and health insurance in Massachusetts for the motor vehicle dealer class of business and compute the deviated case rates for credit life and credit accident and health insurance sold through motor vehicle dealers for policies issued or renewed between January 1, 2008 and December 31, 2010.

The deviated case rates for 2008 through 2010 for the motor vehicle dealer class of business remain unchanged for both credit life insurance and credit accident and health insurance. The rates are:


  1. Credit Life Insurance - The rates per one thousand dollars of insurance in force per month shall be forty six cents for single life insurance and one hundred and sixty percent of said single life insurance rate for joint life insurance, or seventy four cents.

  2. Credit Accident and Health Insurance - The single premium rates for each one hundred dollars of initial indebtedness shall be forty nine cents for each of the first four years of the term of coverage, thirty five cents per annum for each of the next three years of the term of coverage and eighteen cents per annum for each year thereafter.

Any questions concerning this Bulletin should be directed to Henry Lieberman, Life Actuary, at henry.lieberman@state.ma.us.