The Impact of Rate Regulations on Sales Practices
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States do not directly regulate the premium rates for credit life insurance.1 However, states do substantially influence prevailing rates in the following manner: each state establishes what are known as prima facie rates, which are the maximum rates an insurance company can charge in that state without formally justifying the need for a higher rate. As a consequence, prima facie rates often serve as de facto determinants of the maximum premium rates charged in a particular state.
KeywordsRate Regulation Credit Union Premium Rate Credit Insurance Premium Payment
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