IN| The Indiana Department of Insurance issued Bulletin 277 to update credit life and accident and health insurance rates based on a triennial review of loss ratios and discount rates, as required by state regulations.
Key updates:
- Credit Life Insurance: The aggregate loss ratio for 2021–2023 was 68.2%, exceeding the required 55%. As a result, prima facie rates will increase by 32.5%, with new monthly rates set at $1.07 per $1,000 of insured debt for single life and $1.79 for joint life coverage.
- Accident and Health Insurance: The aggregate loss ratio for 2021–2023 was 41.6%, below the target of 55%. Consequently, prima facie rates will decrease by 6.1%, with adjustments based on policy type and loan duration, effective no later than July 1, 2025.
- Discount Rate Adjustment: The discount rate for life insurance increased to 3.47% (including a 0.4% mortality factor), while the rate for accident and health insurance rose to 3.07%, reflecting higher Treasury Note yields from 2021–2023.