KRS 304.19-082: Rates for credit health insurance coverage to credit union borrowers

when coverage is not a loan condition.

(1) Notwithstanding KRS 304.19 -080, an insurer issuing credit health insurance

coverage to credit union borrowers, when the coverage is not required as a

condition of the loan, may use higher credit health insurance premium rates for

specific credit unions if the rates for those credit unions have been filed with the

commissioner, and within thirty (30) days of the filing the commissioner has not

disapproved the rate as excessive in relation to the benefits provided.

(2) In determining whether to disapprove any rate, the commissioner shall give due

consideration to the morbidity costs with respect to the insurance, a reasonable

margin for underwriting expenses, profits, contingencies and other reasonable costs

and expenses attributable to the insurer, and costs and compensation to the creditor

for providing and servicing the insurance, plus the premium taxes payable on the

insurance.