rates provided by ARM 6.6.1101 are presumed to produce reasonable benefits in
relation to premium only if:
credit life insurance contract contains no exclusion other than for suicide
committed within two years of the effective date of the insurance; and
contract contains no age restrictions more severe than those making ineligible
for coverage debtors older than the applicable age limit, which must not be
less than attained age 65 years if such limit applies to the age when the
insurance attaches, or not less than attained age 66 if such limit applies to
the age on the scheduled maturity date of the debt.
the insurer used ages 70 and 71, or higher ages, instead of ages 65 or 66, the
prima facie rates in-ARM 6.6.1101(1) may be increased by 5%.
the insurer imposes no age limit, the prima facie rates may be increased by
(2) If a
debtor exceeds the eligibility age, has correctly stated his age in writing, or
otherwise, and a certificate or policy is issued to him in error, the insurer
has the right within 60 days from the date of the loan or extension of credit
to terminate coverage and refund any premiums paid. Failure on the part of the
insurer to act in a timely manner will subject it to the full risk regardless
of the age.
the debtor dies within the 60 day period before the insurer terminates
coverage, the insurer will be liable for the amount of the debtor's insurance
the policy is issued beyond the age limits established in the policy due to
misstatement of age of the debtor, an equitable adjustment of premiums or of
benefits must be made as provided by the policy.
contract may require submission of evidence of insurability.