KRS 304.19-080: Filing -- Effectiveness and withdrawal.

(1) All such policies, certificates of insurance, notices of proposed insurance,

applications for insurance, indorsements and riders delivered or issued for delivery

in this state and the schedule of premium rates pertaining thereto shall be filed with

the commissioner.

(2) All life insurance and all health insurance in connection with loans or other credit

transactions shall be subject to KRS 304.19 -020 to 304.19 -140, except health

insurance in connection with a loan or other credit transaction of more than fi ve (5)

years' duration or life insurance in connection with a loan or other credit transaction

of more than ten (10) years' duration; nor shall insurance be subject to KRS 304.19 -

020 to 304.19 -140 where the issuance of such insurance is an isolated transac tion

on the part of the insurer not relating to an agreement or a plan for insuring debtors

of the creditor; nor shall insurance issued for an amount in excess of forty thousand

dollars ($40,000) be subject to KRS 304.19-020 to 304.19-140.

(3) (a) Credit l ife insurance. The premium rates set forth hereunder, or actuarially

equivalent, shall not exceed:

1. For decreasing term credit life insurance, a single premium of sixty

cents ($0.60) per annum per one hundred dollars ($100) of scheduled

indebtedness, or sixty-five cents ($0.65) per annum per one hundred

dollars ($100) of scheduled indebtedness if dismemberment benefits are

included in the policy;

2. Single premium rates for indebtedness repayable in monthly

installments other than twelve (12) in number sh all not exceed one -

twelfth (1/12) of the above premium rate multiplied by the number of

full months in the scheduled period;

3. A premium payable monthly at the rate of ninety -two cents ($0.92) per

one thousand dollars ($1,000) of outstanding unpaid insure d

indebtedness or one dollar ($1) per one thousand dollars ($1,000) of

outstanding unpaid insured indebtedness if dismemberment benefits are

included in the policy, will be deemed the actuarial equivalent of the

foregoing rates; and

4. For level term credi t life insurance, a single premium of one dollar and

twenty cents ($1.20) per annum per one hundred dollars ($100) of

indebtedness or one dollar and thirty cents ($1.30) per one hundred

dollars ($100) of indebtedness if dismemberment benefits are included

in the policy.

(b) 1. The standards set forth above are applicable to a plan of death benefits

with or without requirements for evidence of insurability which contain

no exclusions except for suicide; other exclusions must receive the

approval of the commissioner.

2. Coverage shall be offered to all debtors regardless of age; or to all

debtors not older than the applicable age limit which shall be not less

than sixty-five (65) at the inception of the indebtedness or sixty -six (66)

at the scheduled maturity date of the transaction, provided that each

company's right to underwrite risks on an individual basis shall not be

restricted by this subparagraph. Appropriate adjustments may be made

with the approval of the commissioner if premium rates are determined

according to the age of the insured debtor or by age brackets.

3. Rates for use with forms which are more restrictive in any material

respect shall reflect such variations in lower rates. Similarly, forms

providing more extensive benefits than set forth above may carry

appropriately higher charges.

4. The standards set forth above shall be applicable to contracts which may

contain a provision excluding or denying a claim for death, resulting

from pre -existing illness, disease or physical condition for which the

debtor r eceived medical advice, consultation or treatment during the

twelve (12) month period immediately preceding the effective date of

the debtor's coverage and which would ordinarily be expected to affect

materially the debtor's health during the period of cov erage; provided,

however, that after such coverage has been in force for six (6) months

(twelve (12) months for contracts of more than three (3) years), this pre -

existing exclusion clause shall not operate to deny coverage for any

death thereafter. The con tract shall contain no other provision which

excludes or restricts liability in the event of death caused in a certain

specified manner, except provisions excluding or restricting coverage in

the event of intentionally self -inflicted injuries, foreign trav el or

residence, flight in nonscheduled aircraft, war or military service.

(4) (a) Credit health insurance. The following premium rates, or actuarially

equivalent rates, shall be charged for the coverages set forth hereunder:

Single Premium Per $100 of Initial Indebtedness

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Nonretroactive Basis Retroactive Basis

Number of Monthly 14-Day 30-Day 14-Day 30-Day

Installments Wait Wait Wait Wait

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1-6 months $ 1.51 $ .69 $2.02 $ .92

7-12 months 2.02 .91 2.69 1.22

13-19 months 2.50 1.56 3.33 2.08

20-24 months 2.93 1.84 3.91 2.45

25-30 months 3.28 2.34 4.37 3.12

31-36 months 3.85 2.77 5.14 3.70

37-48 months 4.77 3.67 6.36 4.89

49-60 months 5.68 4.58 7.58 6.11

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(b) 1. The standards set forth above shall be applicable to contracts which may

contain a provision excluding or denying a claim for disability, resulting

from pre -existing illness, disease or physical condition for which the

debtor received medical advice, consult ation or treatment during the

twelve (12) month period immediately preceding the effective date of

the debtor's coverage and which would ordinarily be expected to affect

materially the debtor's health during the period of coverage; provided,

however, that after such coverage has been in force for six (6) months

(twelve (12) months for contracts of more than three (3) years), this pre -

existing exclusion clause shall not operate to deny coverage for any

disability commencing thereafter. The contract shall con tain no other

provision which excludes or restricts liability in the event of disability

caused in a certain specified manner, except provisions excluding or

restricting coverage in the event of pregnancy, intentionally self -

inflicted injuries, foreign tra vel or residence, flight in nonscheduled

aircraft, war or military service.

2. Coverage shall be offered to all debtors regardless of age, or to all

debtors not older than the applicable age limit which shall be not less

than sixty-five (65) at the inception of the indebtedness or sixty -six (66)

at the scheduled maturity date of the transaction, provided that each

company's right to underwrite risks on an individual basis shall not be

restricted by this subparagraph. Appropriate adjustments may be made

with the approval of the commissioner if premium rates are determined

according to the age of the insured debtor or by age brackets.

3. Rates for use with forms which are more restrictive in any material

respect shall reflect such variations in lower rates. Si milarly, forms

providing more extensive benefits than set forth above may carry

appropriately higher charges.

(5) Statistical reporting. Each insurer writing credit life or credit health insurance

within this state shall keep and maintain statistical data of its experience on these

kinds of insurance. The insurer shall, on or before May 1 of each year, file with the

commissioner its statistical experience data for the year ending December 31

immediately preceding. Such experience shall be reported on forms conforming to

those now or hereafter from time to time adopted by the National Association of

Insurance Commissioners.

(6) If a group policy has been delivered in this state before June 18, 1980, or has been

or is delivered in another state before or on or after June 18, 1980, the insurer shall

be required to file only the group certificate and notice of proposed insu rance

delivered or issued for delivery in this state as specified in subsections (2) and (4)

of KRS 304.19-070, and such forms shall be approved by the commissioner if they

conform with the requirements specified in such subsections and if the schedules of

premium rates applicable to the insurance evidenced by such certificate or notice

are not in excess of the insurer's schedules of premium rates filed with the

commissioner. The premium rate in effect on existing group policies may be

continued until the first policy anniversary date following June 18, 1980. After June

18, 1980, no borrower shall be added to an existing group policy at rates higher

than those set forth in subsections (3) and (4) of this section.

(7) The foregoing rates and procedures are de emed to be legislative prerogatives and

shall not be subject to administrative or executive change or modification.