OIR Rule Development Hearing Report: Credit Life and Credit Disability Insurance

The Florida Office of Insurance Regulation had scheduled a Rule Development Hearing for the following Rules relating to Credit Life and Credit Disability Insurance:

69O-163.0075: Term and Evidence of Insurance
69O-163.009: Determination of Reasonableness of Benefits in Relation to Premium Charge
69O-163.011: Credit Disability Insurance Rates

However, because no one attended, the Hearing was adjourned.

To view the meeting notice and text of the proposed Rules, click here.

The above Rules are being amended to address statutory changes contained in House Bill 343, which the Governor approved on May 28, 2008. The bill removes the $50,000 for credit life, but did not remove the 10-year limit that is still contained in the law. Similarly, the bill removed the 10-year limit for credit disability, but did not remove the $50,000 that also is still contained in the law.

The stipulation that a term of insurance shall not exceed 10 years subject to certain restrictions under the term and evidence of credit life insurance is now gone. The revised rule effectuates a 10-year cap for credit life insurance uniformly from the date of issue.
Also, the Rule extinguishes the requirement of providing the lesser of 60 monthly payments or the number of monthly payments for the full term of the loan.

 

Should you have any questions or comments, please contact Colodny Fass.

 

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