20-1610. Premiums for consumer credit
insurance; approval or disapproval of rates
A. The consumer credit insurance charge to the debtor shall not exceed the premium
for the particular coverage that is specified in the insurer's rate schedule on file with
the director. If the premium is less than that specified in the rate schedule, the
insurer shall charge the lesser amount.
B. A person shall not use in this state a schedule of premium rates or any revision
of the schedule for consumer credit insurance unless the person has first filed the
schedule or revision with the director and the director has approved the schedule or
revision. A person shall file each schedule or revision with the director at least thirty
days before using the schedule or revision. Unless the director issues an order
affirmatively approving or disapproving the schedule or revision within thirty days after
filing the schedule or revision, the schedule or revision is deemed approved. On written
notice given within the thirty day period to the person making the filing, the director
may extend the period for review up to fifteen additional days to enable the director to
complete the review of the schedule or revision. The director shall disapprove the
schedule or revision if in the director's opinion the premium rates charged or to be
charged are excessive in relation to benefits that may be awarded. In determining
whether to disapprove the schedule or revision the director shall accord due
consideration to past and prospective loss experience within and outside this state, to
underwriting practice and judgment and to all other factors relevant to the relationship
between premium rates and benefits.
C. Rates for credit unemployment insurance are subject to section 20-1621.05.
D. If the director disapproves any schedule of premium rates or determines that
approval once given should be withdrawn, the director shall so notify the insurer and
thereafter the schedule shall not be used. The notice issued by the director shall
specify the reason for the decision and advise the insurer of the hearing procedure
prescribed by title 41, chapter 6, article 10.
E. Premiums in accordance with a schedule of rates filed with and approved by the
director for consumer credit insurance shall be deemed not interest or as an amount in
excess of permitted charges in connection with a loan or credit transaction, and any gain
or advantage to a creditor arising from a premium or commission in the sale or provision
of this insurance shall be deemed not interest or charges.
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