SC| Order Number 2025-003, from the South Carolina Department of Insurance, establishes the 2026 rates for credit accident and health insurance sold in connection with consumer credit transactions subject to the South Carolina Consumer Protection Code, excluding certain loans under the 1966 S.C. Act No. 988. After a notice and review process, the Department approved the proposed single premium rates per $100 of initial indebtedness for various coverage periods, and outlined additional actuarial rules and reporting requirements for insurers.
Key Points:
- Premium rates are set for coverage periods ranging from 12 to 180 months, with 14-day retro and 30-day retro options, and must be used as outlined without deviation; rates for periods not matching full years may be interpolated to quarters or months.
- Insurers must use actuarially equivalent rates for non-single premium payment options and an 80% factor for open-ended monthly policies reported on the NAIC Part 2C blank; no deviations from the prima facie rates will be approved.
- Insurers are required to submit statistical data as per 25A S.C. Code Ann. Reg. 69-11.1, file annual experience exhibits, and notify the Department by December 1st of their intent to use the promulgated rates, effective immediately as of October 1, 2025.