Rule 20:06:06:06 Deviations from prima facie acceptable credit insurance rates.
20:06:06:06. Deviations from prima facie acceptable credit
insurance rates. Deviations from prima facie acceptable credit insurance
rates may be approved as follows:
(1) Requests for rates
higher than those established in this chapter for a debtor or a creditor or a
class or classes of debtors or creditors may be approved on a satisfactory
showing by the insurer that, because of the nature of the risk, the mortality
or morbidity experience which may reasonably be anticipated will be
significantly higher than the average anticipated experience upon which the
applicable rate standard was based;
(2) In judging requests for
higher rates, the director of insurance will consider the following:
mortality and morbidity data pertaining to the debtors of a creditor or a class
or classes of debtors of a creditor;
experience, if any, for an actuarially credible period of the creditor's
debtors, including the experience of any subsidiary or affiliate of the
(c) Available age
(d) A reasonable rate
(3) Age data and prior
experience of the creditor's program shall always be submitted; and
(4) Commissions or other
payments or allowances to creditors, agents, or general agents shall not be considered
a justification for higher rates.
4 SDR 6, effective August 9, 1977; 5 SDR 91, effective April 25, 1979; 12 SDR
151, 12 SDR 155, effective July 1, 1986.
Authority: SDCL 58-19-34.
Implemented: SDCL 58-19-26.
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