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Commissioner’s Bulletin # B-0069-05

November 30, 2005

TO: ALL INSURERS PROVIDING CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE AS DEFINED BY CHAPTER 1153, TEXAS INSURANCE CODE

RE: CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH PRESUMPTIVE PREMIUM RATES EFFECTIVE JANUARY 1, 2006

The purpose of this bulletin is to remind companies of the new presumptive premium rates and procedures for credit life and credit accident and health insurance. These new presumptive premium rates were adopted by rule on May 18, 2005, by the Commissioner of Insurance pursuant to Texas Insurance Code Chapter 1153. This rule can be found on TDI´s website at http://www.tdi.state.tx.us/rules/pdf/0519-059.pdf.

The new presumptive rates are included with this bulletin in chart form, showing the rates by plan for credit life and credit accident and health. The new rates are effective January 1, 2006, at 12:01 a.m.

Companies should note that, for the first time, the Commissioner has established separate rates for Class E, dealers (including auto and truck, other dealers, and retail stores), and for all other classes of business (Classes A-D and F). Likewise, the order establishes separate loss ratios for Class E and for all classes of business other than E.

All companies are required to file, no later than January 1, 2006, rate schedules demonstrating that each company´s rates comply with the rule. The filing should identify each policy form number, the date approved, and the rates to be used as of January 1, 2006. Rate deviations currently in place are allowed to continue pursuant to 28 TAC §3.5601 et seq.; however, companies must still re-file those rates under the new rule. Additional information relative to the filing of credit life and credit accident and health rates can be found on TDI´s website at www.tdi.state.tx.us under Forms/Life Health and Licensing-Life & Health.

All rate filings should be submitted, along with the required checklist and filing fees, to:

Texas Department of Insurance

Filing Intake Division: Mail Code 106-1E

P.O. Box 149104

Austin,Texas 78714-9104

Questions regarding this bulletin or credit rate filings in general should be directed to the undersigned at 512-322-3401 or at LifeHealth@tdi.state.tx.us.

Sincerely,

Ana M. Smith-Daley

Acting Associate Commissioner, Life, Health & Licensing Program





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