§ 2248.37. Rates by Age.

Latest version.

Age-banded rates may be used upon the Commissioner's approval. The Commissioner shall not approve such rates unless:
(a) They are actuarially equivalent to the prima facie rates established by this Article based upon demonstrated mortality or morbidity rates for each age band and the margins for insurer expenses and profit assumed in the prima facie rates;
(b) They would produce an aggregate premium which would not substantially exceed that which would be produced by the prima facie rates, assuming a normal distribution of debtors by age within the experience group for the Class of Business.

HISTORY

1. New section filed 4-14-94; operative 5-16-94. Submitted to OAL for printing only pursuant to Government Code section 11343(a)(1) (Register 94, No. 15).

Note

Note: Authority cited: Sections 779.21 and 779.36, Insurance Code. Reference Sections 779.9, 779.13, 779.16 and 779.36, Insurance Code; Sections 18191, 18290 - 18292, 22458.1, 22458.2, 24458.1, 24458.2, Financial Code; and Credit Insurance General Agents Association v. Payne, (1976) 16 Cal.3d 651.

                    
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