CurrentNebraska Department of InsurancePolicy N/A

Credit Life Insurance and Credit Accident and Health Insurance — Prima Facie Rates and Filing Guidance

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Sets prima facie premium rates for credit life and credit accident & health insurance for 2025–2027, explains required rate-filing procedures, limits on agent/creditor compensation, and joint coverage conditions for insurers, creditors, and agents.

Policy Summary

PayerNebraska Department of Insurance

PolicyCredit Life Insurance and Credit Accident and Health Insurance — Prima Facie Rates and Filing Guidance

Policy CodePolicy N/A

Change TypeUpdated prima facie rates and clarified filing/deviation rules

Effective DateJan 14, 2025

Next Review Date

Key ActionInsurers must file schedules of premium rates with the Director; filings at or below the prima facie rates require no additional justification, while upward deviations need company-specific support and Director approval.

SourceLink

POLICY UPDATE CHANGES

NDOI is issuing updated prima facie rates for calendar years 2025, 2026, and 2027, effective April 1, 2025 for 2025 rates (with 2026/2027 effective January 1 of those years).

Prima facie rates were reviewed in September 2024 and updated; new published tables for credit accident & health for 2025–2027 replace prior tables.

An insurer may file rates up to the published prima facie rates without additional actuarial justification, but any upward deviation requires adequate company-specific support.

45-50%target loss ratio

Apr 1, 20252025 rates effective

30%max compensation

3 yrsreissuance interval

1.80joint factor

Coverage Criteria and Limits

Prima facie rate filing and deviation rules

Covered when ALL of the following filing and deviation conditions are met:

Insurer must file a schedule of premium rates with the Director as required by NEB.REV.STAT § 44-1709(1); no insurer may issue a policy with premium rates that exceed the schedule on file with the Director.

If filed rates are equal to or less than the published prima facie rates, no additional statistical or actuarial justification is required because the NDOI has determined those rates to be reasonable.

If filed rates exceed the published prima facie rates (upward deviation), the insurer must provide appropriate, adequate, and credible company‑specific experience, rating components, and other statistical data to support the deviation; the Director must be satisfied with the justification before approval.

Any approved deviations must be refiled and re‑approved by the NDOI upon reissuance of this guidance document; additional justification may be required and previously approved deviations may be withdrawn if no longer reasonable.

When evaluating a deviation filing, the NDOI will consider factors including a company’s recent cumulative loss ratios (Nebraska and nationwide), category‑specific loss ratios, and company‑specific component rating categories.

If an insurer acquires an account with previously approved deviated rates, the acquiring insurer may use those rates (or lower) until reissuance of this guidance document or may file new deviated rates; upon reissuance the acquiring insurer must adopt the new prima facie rates or refile for deviations.

Agent and creditor compensation requirements

Covered when ALL of the following compensation and agent/creditor requirements are met:

Total compensation paid to or received by a creditor and/or agent (separately or jointly) must not exceed 30% of the premium; compensation in excess of 30% is deemed unreasonable relative to the benefit provided and will not be approved.

Compensation includes, but is not limited to, commissions, service and consulting fees, electronic data processing equipment or services, supplies (other than department‑approved forms), rental equipment, advertising, reduced‑cost telephone, profit‑sharing, experience rating refunds or credits, dividends, expense allowances, stock plans, bonuses, merchandise, travel, prizes, conventions, trips, and similar benefits.

Maintaining interest‑free or low‑interest deposits with a creditor to acquire or maintain business, or allowing a creditor the use of premiums for undue periods at low or no interest, is considered compensation for purposes of the 30% limitation; insurers may invest in CDs or interest‑bearing accounts with creditors only if interest paid is at least equal to market rates.

Premiums received by a creditor or an agent must actually be remitted to the insurance company within 45 days from the end of the month in which the premiums were received.

The NDOI will not treat a creditor or any five‑percent beneficial stock owner of any agency or creditor as a bona fide general agent eligible for override commissions or similar payments; insurers are responsible for agent conduct and must maintain internal procedures to ensure compliance.

Payment of compensation in excess of 30% constitutes prima facie evidence of violations of Nebraska insurance statutes (see guidance).

Joint coverage conditions

Joint credit accident and health coverage is permitted only when ALL of the following conditions are satisfied:

Coverage must insure each of two joint debtors (not cosigners or endorsers) for 100% of the payment; joint coverage may not be provided by two single policies or certificates and joint debtors may not both be covered separately at single rates.

The coverage must be evidenced by an individual policy or certificate for each joint debtor (not by two separate single policies).

The benefit to be paid under joint coverage may not exceed the benefit that would be paid if coverage were provided on a single insured.

If coverage is terminated for only one joint debtor, the insurer must refund the appropriate portion of the extra premium paid for joint rather than single coverage; the remaining debtor continues to be covered.

Each joint debtor must elect and sign for the joint coverage.

Published Prima Facie Rates and Tables

Prima facie life rates (sample thresholds)

Single Premium Decreasing Term Life (2025)$.45 per year per $100 indebtedness

Single Premium Decreasing Term Life (2026)$.41 per year per $100 indebtedness

Single Premium Decreasing Term Life (2027)$.36 per year per $100 indebtedness

Outstanding Balance Life (2025)$.62 per $1,000 per month on outstanding balance

Level Term Life (2027)$.67 per year per $100 original indebtedness

Prima facie accident & health rate tables

2025 rate table (effective April 1, 2025)Per $100 original indebtedness with cells such as 1,14-day retroactive = 1.33; 1,14-day elimination = 0.90; 1,30-day retroactive = 0.90; 1,30-day elimination = 0.49

2026 rate table (effective Jan 1, 2026)Per $100 original indebtedness with cells such as 1,14-day retroactive = 1.17; 1,14-day elimination = 0.79; 1,30-day retroactive = 0.79; 1,30-day elimination = 0.43

2027 rate table (effective Jan 1, 2027)Per $100 original indebtedness with cells such as 1,14-day retroactive = 1.03; 1,14-day elimination = 0.69; 1,30-day retroactive = 0.69; 1,30-day elimination = 0.38

Table structureTables list age/term cells (e.g., term 1–13) with corresponding retroactive and elimination period cell values per $100 original indebtedness

Filing Requirements and Required Actions for Insurers

Prior Authorization

File rate schedules; support any upward deviations

Insurers must file a premium rate schedule with the Director; filing rates that are equal to or below the published prima facie rates requires no additional statistical or actuarial justification. Any filed rate above the prima facie rates is considered an upward deviation and must be supported to the Director’s satisfaction with appropriate, adequate, and credible company-specific experience, rating components, and other statistical data; approved deviations must be refiled upon reissuance of this guidance and may be withdrawn if no longer reasonable.

File a premium rate schedule adopting the prima facie rates even when using those rates.
Provide appropriate, adequate, and credible experience, company-specific rating components, and other statistical data to support any upward deviation.
Refile approved deviations upon reissuance of this guidance; NDOI may withdraw prior approvals if rates are no longer reasonable.

Key Definitions

Compensation

Definition'Compensation' means money or anything else of value paid directly or indirectly by or on behalf of the insurer, its agent, general agent, or by a subsidiary, parent, or affiliate of the insurer or by any other person to or on behalf of a creditor.

Included itemsCommission, service fees, consulting fees, electronic data processing equipment or services, advertising, travel, bonuses, dividends, and similar benefits are considered compensation.

Remittance requirementPremiums received by a creditor or an agent must be remitted to the insurer within 45 days from the end of the month in which premiums were received.

Investment guidanceAn insurer may invest in CDs or interest-bearing accounts with a creditor if interest paid is at least equal to market rates.

Credit Insurance

Scope'Credit Insurance' means both credit life insurance and credit accident and health insurance as defined in NEB. REV. STAT. § 44-1702.

Relation to prima facie ratesPrima facie rates presume reasonableness only when total compensation to creditor/agent does not exceed 30% of premium.

Prohibited conductNo insurer or agent may separately or jointly pay or promise compensation to a creditor in excess of 30% of premium.

Creditor

Definition'Creditor' means a lender of money or vendor or lessor of goods, services, property, rights or privileges for which payment is arranged through a credit transaction, including affiliates, associates, subsidiaries, directors, officers, or employees of such entities.

Role restrictionsA creditor (or any 5% beneficial stock owner of an agency or creditor) will not be considered a bona fide general agent for override compensation purposes.

Compensation limit applicabilityThe 30% compensation limitation applies whether or not an insurer is using the published prima facie rates.

Director

Definition'Director' shall mean the Director of the Department of Insurance of the State of Nebraska.

Filing authorityInsurers must file schedules of premium rates with the Director; filings at or below prima facie rates require no additional justification (see filing rules).

Approval/withdrawalThe Director may approve or withdraw deviations when company-specific support is inadequate.

Premium

Definition'Premium' means the cost or charge for credit insurance which has been filed with and approved by the NDOI.

Compensation threshold effectRates that include compensation in excess of 30% of premium are considered unreasonable and will not be approved.

Filing implicationInsurers may file rates up to published prima facie rates without additional actuarial justification; upward deviations require company-specific support and Director approval.

Policy Summary

PayerNebraska Department of Insurance

PolicyCredit Life Insurance and Credit Accident and Health Insurance — Prima Facie Rates and Filing Guidance

Policy CodePolicy N/A

Change TypeUpdated prima facie rates and clarified filing/deviation rules

Effective DateJan 14, 2025

Next Review Date

SourceLink

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Credit Life Insurance and Credit Accident and Health Insurance — Prima Facie Rates and Filing Guidance

Customize your policy alerts

Sign up for all Nebraska Department of Insurance policy alerts

Know when Nebraska Department of Insurance releases new policies or updates existing guidance.

Monitor payer policy activity

Receive email alerts as soon as relevant payer policies are published or updated.

Coverage Criteria and Limits

Prima facie rate filing and deviation rules

Covered when ALL of the following filing and deviation conditions are met:

Agent and creditor compensation requirements

Covered when ALL of the following compensation and agent/creditor requirements are met:

Premiums received by a creditor or an agent must actually be remitted to the insurance company within 45 days from the end of the month in which the premiums were received.

Payment of compensation in excess of 30% constitutes prima facie evidence of violations of Nebraska insurance statutes (see guidance).

Joint coverage conditions

Joint credit accident and health coverage is permitted only when ALL of the following conditions are satisfied:

The coverage must be evidenced by an individual policy or certificate for each joint debtor (not by two separate single policies).

The benefit to be paid under joint coverage may not exceed the benefit that would be paid if coverage were provided on a single insured.

Each joint debtor must elect and sign for the joint coverage.

Published Prima Facie Rates and Tables

Prima facie life rates (sample thresholds)

Single Premium Decreasing Term Life (2025)$.45 per year per $100 indebtedness

Single Premium Decreasing Term Life (2026)$.41 per year per $100 indebtedness

Single Premium Decreasing Term Life (2027)$.36 per year per $100 indebtedness

Outstanding Balance Life (2025)$.62 per $1,000 per month on outstanding balance

Level Term Life (2027)$.67 per year per $100 original indebtedness

Prima facie accident & health rate tables

Table structureTables list age/term cells (e.g., term 1–13) with corresponding retroactive and elimination period cell values per $100 original indebtedness

Filing Requirements and Required Actions for Insurers

Prior Authorization

File rate schedules; support any upward deviations

File a premium rate schedule adopting the prima facie rates even when using those rates.
Provide appropriate, adequate, and credible experience, company-specific rating components, and other statistical data to support any upward deviation.
Refile approved deviations upon reissuance of this guidance; NDOI may withdraw prior approvals if rates are no longer reasonable.

Key Definitions

Compensation

Included itemsCommission, service fees, consulting fees, electronic data processing equipment or services, advertising, travel, bonuses, dividends, and similar benefits are considered compensation.

Remittance requirementPremiums received by a creditor or an agent must be remitted to the insurer within 45 days from the end of the month in which premiums were received.

Investment guidanceAn insurer may invest in CDs or interest-bearing accounts with a creditor if interest paid is at least equal to market rates.

Credit Insurance

Scope'Credit Insurance' means both credit life insurance and credit accident and health insurance as defined in NEB. REV. STAT. § 44-1702.

Relation to prima facie ratesPrima facie rates presume reasonableness only when total compensation to creditor/agent does not exceed 30% of premium.

Prohibited conductNo insurer or agent may separately or jointly pay or promise compensation to a creditor in excess of 30% of premium.

Creditor

Role restrictionsA creditor (or any 5% beneficial stock owner of an agency or creditor) will not be considered a bona fide general agent for override compensation purposes.

Compensation limit applicabilityThe 30% compensation limitation applies whether or not an insurer is using the published prima facie rates.

Director

Definition'Director' shall mean the Director of the Department of Insurance of the State of Nebraska.

Filing authorityInsurers must file schedules of premium rates with the Director; filings at or below prima facie rates require no additional justification (see filing rules).

Approval/withdrawalThe Director may approve or withdraw deviations when company-specific support is inadequate.

Premium

Definition'Premium' means the cost or charge for credit insurance which has been filed with and approved by the NDOI.

Compensation threshold effectRates that include compensation in excess of 30% of premium are considered unreasonable and will not be approved.

Filing implicationInsurers may file rates up to published prima facie rates without additional actuarial justification; upward deviations require company-specific support and Director approval.