rates provided by ARM 6.6.1103 are presumed to produce reasonable benefits in
relation to premiums only if:
coverage contains no exclusions for pre-existing conditions except for those
conditions which manifested themselves to the insured debtor by requiring medical
diagnosis or treatment within 6 months prior to the application for insurance
and which caused loss within the 6 months following the effective date of
coverage. However, a disability commencing after the expiration of the first 6
months following the effective date of coverage and resulting from such
conditions shall be covered.
policy shall provide that in event the indebtedness covered by the policy
results from the refinancing in whole or part of a prior debt with the same
creditor, any period of exclusion for pre-existing conditions shall be
reduced by any period that creditor-debtor disability coverage was in
force in connection with the prior indebtedness, provided however, that if the
resulting period of exclusion for pre-existing conditions is less than
the period that would normally be applicable and if as a result a claim for
which disability benefits would not otherwise be allowed is payable, the
benefits for such claim need not be greater than those which would have been
paid under the prior policy if it had not terminated.
(b) Coverage is provided or offered to all debtors not older than the applicable
age limit, which shall 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 years if such limit applies to the age on the scheduled maturity date of the
the insurer uses ages 70 and 71, or higher ages, instead of ages 65 and 66, the
prima facie rates in ARM 6.6.1103(2) may be increased by 5%.
(ii) If the insurer imposes no age limit, the
prima facie rates may be increased by 10%.
(c) The contract may require submission of
evidence of insurability; and
(d) The contract may require the debtor be
gainfully employed (or unemployed solely because of seasonal lay-off) at the
time the insurance becomes effective and meets other standards as provided in