department of regulatory agencies 
DIVISION OF INSURANCE
3 CCR 702-4
PROPOSED AMENDED REGULATION 4-9-2
CREDIT INSURANCE
Section 1	Authority
Section 2	Scope and Purpose
Section 16	Effective Date
Section 17	History
Appendix 1	Summary of Component based rates 
Section 1	Authority
This regulation is promulgated under the authority of §§10-1-109, 10-10-109(2.5)(c) and 10-10-114, C.R.S. 
Section 2	ScopeBackground and Purpose
The purpose of this regulation is to implement component rating and provide standards to enforce the provisions of Article 10 of Title 10, C.R.S., regarding all forms of credit insurance.  
Section 16.	Effective Date
This regulation shall become effective on January 1, December 31, 2006.
Section 17.	History
New Regulation 74-1 effective March 15, 1974.
Amended effective December 22, 1975.
Amended effective July 1, 1979.
Amended effective January 1, 1985.
Regulation 74-1 was renumbered 4-9-1, effective June 1, 1992.
Regulation 4-9-1 was repealed effective October 9, 1992.
New Regulation 4-9-2, effective October 9, 1992.
Amended effective April 1, 1993.
Amended effective November 1, 2000.
Amended effective December 1, 2002.
Amended effective January 1, 2006.  
Amended effective December 31, 2006.

APPENDIX 1

All Rates Listed in Section 1 through 9 are for Single Life Coverage.  

1.	Single Premium Life Insurance – Not for use by Credit Union Accounts

1A.	Gross decreasing term coverage:  The rate is $0.38 per $100 per year.
1B.	Net decreasing term coverage:  The rate is the sum of the component based Monthly Outstanding Balance Life Insurance rate for All Other as in 2.B. below, applied to the amount of coverage in force during each month.
1C.	Truncated coverage:  The rate is the sum of the component based Monthly Outstanding Balance Life Insurance rate for All Other as in 2.B. below, applied to the amount of net coverage in force during each month.
1D.	Level Term coverage:  The component based rate is $0.71 $0.70 per $100 per year.

2.	Monthly Outstanding Balance Life Insurance – Not for use by Credit Union Accounts

2A.	Revolving charge accounts:  The component based rate is $0.59 $0.58 per $1,000 per month.
2B.	All other: The component based rate is $0.59 $0.58 per $1,000 per month.

3.	Level Monthly Premium Decreasing Term Life Insurance – Not for use by Credit Union Accounts

3A.	Gross coverage:  Rates per $1,000 initial balance by number of years:	
Years	 Rate	
1	0.33 	
2	0.33 	
3	0.34 0.33	
4	0.35 0.34	
5	0.36 0.35	
6	0.37 0.36	
7	0.38 0.37	
8	0.39 0.38	
9	0.40 0.39	
10	0.41 0.40	

3B.	Net coverage:  Rates per $1,000 initial balance by number of years:	
Years	Rate	
1	0.34 0.33	
2	0.34 	
3	0.35 	
4	0.37 0.36	
5	0.38 	
6	0.40 0.39	
7	0.41 0.40	
8	0.42 	
9	0.44 0.43	
10	0.45 0.44	

3C.	Truncated coverage:  Net Pay Truncated coverage rates are as follows:

Term (Yrs)	
1Yr	
2 Yr	
3 Yr	
4 Yr	
5 Yr	
6 Yr	
7 Yr	
8 Yr	
9 Yr	
10 Yr	
1	0.34 0.33										
2	0.47 0.46	0.34 									
3	0.51 	0.43 	0.35 								
4	0.54 0.53	0.48 0.47	0.42 	0.37 0.36							
5	0.55 0.54	0.50 	0.46 	0.42 0.41	0.38 						
6	0.56 0.55	0.52 	0.49 0.48	0.46 0.45	0.43 0.42	0.40 0.39					
7	0.56 	0.54 0.53	0.51 0.50	0.48 0.47	0.46 0.45	0.43 	0.41 0.40				
8	0.57 0.56	0.54 	0.52 0.51	0.50 0.49	0.48 0.47	0.46 0.45	0.44 0.43	0.42 			
9	0.57 0.56	0.55 0.54	0.53 	0.51 	0.50 0.49	0.48 0.47	0.46 	0.45 0.44	0.44 0.43		
10	0.57 	0.56 0.55	0.54 0.53	0.53 0.52	0.51 0.50	0.50 0.49	0.48	0.47 0.46	0.46 0.45	0.45 0.44	

4.	Single Premium Disability Insurance  – Rates per $100 of Initial Insurance  - Not for use by Credit Union accounts

4A.	Full Benefit Rates or the End of the Loan Term.  Rates per $100 of Initial Insurance - Not for use by Credit Union Accounts

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	1.46 1.37	0.81 0.76	1.05 0.98	0.32 0.30	
12	1.78 1.67	1.13 1.06	1.38 1.29	0.65 0.61	
24	2.43 2.28	1.78 1.67	2.03 1.90	1.30 1.22	
36	3.08 2.88	2.43 2.28	2.67 2.50	1.94 1.82	
48	3.48 3.26	2.84 2.66	3.08 2.88	2.35 2.20	
60	3.81 3.57	3.16 2.96	3.40 3.18	2.67 2.50	
72	4.13 3.87	3.48 3.26	3.73 3.49	3.00 2.81	
84	4.46 4.18	3.81 3.57	4.05 3.79	3.32 3.11	
96	4.78 4.48	4.13 3.87	4.37 4.09	3.65 3.42	
108	5.10 4.78	4.46 4.18	4.70 4.40	3.97 3.72	
120	5.43 5.09	4.78 4.48	5.02 4.70	4.29 4.02	

4B.	Benefit Limited to the Lesser of 12 months or the End of the Loan Term.  Rates per $100 of Initial Insurance - Not for use by Credit Union Accounts

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	1.46 1.37	0.81 0.76	1.05 0.98	0.32 0.30	
12	1.78 1.67	1.13 1.06	1.38 1.29	0.65 0.61	
24	2.27 2.13	1.65 1.55	1.88 1.76	1.19 1.12	
36	2.64 2.48	2.05 1.92	2.25 2.10	1.58 1.48	
48	2.77 2.59	2.19 2.05	2.38 2.23	1.73 1.62	
60	2.83 2.65	2.26 2.12	2.44 2.28	1.79 1.68	
72	2.88 2.70	2.32 2.17	2.50 2.34	1.86 1.74	
84	2.94 2.75	2.39 2.24	2.55 2.39	1.91 1.79	
96	2.99 2.80	2.44 2.29	2.60 2.44	1.97 1.84	
108	3.04 2.85	2.50 2.35	2.66 2.49	2.02 1.89	
120	3.10 2.90	2.56 2.39	2.71 2.54	2.07 1.93	

4C.	Benefit Limited to the Lesser of 24 months or the End of the Loan Term.  Rates per $100 of Initial Insurance - Not for use by Credit Union Accounts

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	1.46 1.37	0.81 0.76	1.05 0.98	0.32 0.30	
12	1.78 1.67	1.13 1.06	1.38 1.29	0.65 0.61	
24	2.43 2.28	1.78 1.67	2.03 1.90	1.30 1.22	
36	2.98 2.80	2.35 2.20	2.58 2.41	1.87 1.75	
48	3.20 2.99	2.59 2.42	2.80 2.62	2.11 1.97	
60	3.31 3.10	2.70 2.53	2.91 2.73	2.23 2.09	
72	3.40 3.19	2.81 2.63	3.01 2.82	2.34 2.19	
84	3.49 3.27	2.91 2.72	3.10 2.90	2.42 2.27	
96	3.57 3.35	2.99 2.80	3.18 2.97	2.51 2.35	
108	3.65 3.42	3.08 2.88	3.26 3.05	2.59 2.42	
120	3.72 3.49	3.15 2.95	3.33 3.12	2.66 2.49	

4D.	Benefit Limited to the Lesser of 36 months or the End of the Loan Term.  Rates per $100 of Initial Insurance - Not for use by Credit Union Accounts

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	1.46 1.37	0.81 0.76	1.05 0.98	0.32 0.30	
12	1.78 1.67	1.13 1.06	1.38 1.29	0.65 0.61	
24	2.43 2.28	1.78 1.67	2.03 1.90	1.30 1.22	
36	3.08 2.88	2.43 2.28	2.67 2.50	1.94 1.82	
48	3.41 3.20	2.74 2.57	3.01 2.82	2.30 2.15	
60	3.60 3.37	2.94 2.75	3.20 2.99	2.49 2.33	
72	3.74 3.51	3.09 2.89	3.35 3.14	2.65 2.48	
84	3.88 3.63	3.23 3.03	3.47 3.25	2.78 2.60	
96	3.98 3.73	3.35 3.14	3.58 3.36	2.90 2.72	
108	4.09 3.83	3.46 3.24	3.69 3.46	3.01 2.82	
120	4.19 3.92	3.56 3.34	3.79 3.55	3.10 2.91	

5.	Monthly Premium Disability Insurance  (premium base = sum of remaining payments)
  Rates per $1,000 of Remaining Payments -  Not for use by Credit Union Accounts

5A.	Full Benefit Rates or the End of the Loan Term.  Rates per $1,000 of Remaining Payments - Not for use by Credit Union Accounts

		a. Duration specific rates

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	4.17 3.91	2.31 2.17	3.01 2.81	0.93 0.86	
12	2.74 2.56	1.74 1.63	2.12 1.99	1.00 0.94	
24	1.94 1.82	1.43 1.33	1.62 1.52	1.04 0.97	
36	1.66 1.56	1.31 1.23	1.44 1.35	1.05 0.98	
48	1.42 1.33	1.16 1.09	1.26 1.18	0.96 0.90	
60	1.25 1.17	1.04 0.97	1.12 1.04	0.88 0.82	
72	1.13 1.06	0.95 0.89	1.02 0.96	0.82 0.77	
84	1.05 0.98	0.90 0.84	0.95 0.89	0.78 0.73	
96	0.99 0.92	0.85 0.80	0.90 0.84	0.75 0.70	
108	0.94 0.88	0.82 0.77	0.86 0.81	0.73 0.68	
120	0.90 0.84	0.79 0.74	0.83 0.78	0.71 0.66	

		b. Composite term rates for all durations.  

14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
1.49 1.39	1.18 1.10	1.29 1.21	0.95 0.89	

5B.	Benefit Limited to the Lesser of 12 months or the End of the Loan Term.  Rates per $1,000 of Remaining Payments - Not for use by Credit Union Accounts

		a. Duration specific rates

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	4.17 3.91	2.31 2.17	3.01 2.81	0.93 0.86	
12	2.74 2.56	1.74 1.63	2.12 1.99	1.00 0.94	
24	1.81 1.70	1.33 1.24	1.50 1.41	0.95 0.89	
36	1.43 1.34	1.10 1.04	1.21 1.14	0.86 0.80	
48	1.13 1.06	0.90 0.84	0.97 0.91	0.71 0.66	
60	0.93 0.87	0.74 0.69	0.80 0.75	0.59 0.55	
72	0.79 0.74	0.63 0.60	0.68 0.64	0.51 0.48	
84	0.69 0.65	0.56 0.53	0.60 0.56	0.45 0.42	
96	0.62 0.58	0.50 0.47	0.54 0.50	0.40 0.38	
108	0.56 0.52	0.46 0.43	0.49 0.46	0.37 0.35	
120	0.51 0.48	0.42 0.40	0.45 0.42	0.34 0.32	

		b. Composite term rates for all durations.  

14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
1.22 1.14	0.94 0.88	1.03 0.97	0.72 0.67	

5C.	Benefit Limited to the Lesser of 24 months or the End of the Loan Term.  Rates per $1,000 of Remaining Payments - Not for use by Credit Union Accounts

		a. Duration specific rates

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	4.17 3.91	2.31 2.17	3.01 2.81	0.93 0.86	
12	2.74 2.56	1.74 1.63	2.12 1.99	1.00 0.94	
24	1.94 1.82	1.43 1.33	1.62 1.52	1.04 0.97	
36	1.61 1.51	1.27 1.19	1.39 1.30	1.01 0.95	
48	1.30 1.22	1.06 0.99	1.15 1.07	0.86 0.81	
60	1.09 1.02	0.89 0.83	0.96 0.89	0.73 0.68	
72	0.93 0.87	0.77 0.72	0.82 0.77	0.64 0.60	
84	0.82 0.77	0.69 0.64	0.73 0.68	0.57 0.53	
96	0.74 0.69	0.62 0.58	0.65 0.61	0.52 0.49	
108	0.67 0.63	0.57 0.53	0.60 0.56	0.48 0.44	
120	0.62 0.58	0.52 0.49	0.55 0.52	0.44 0.41	

		b. Composite term rates for all durations.  

14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
1.38 1.29	1.08 1.01	1.19 1.11	0.85 0.80	

5D.	Benefit Limited to the Lesser of 36 months or the End of the Loan Term.  Rates per $1,000 of Remaining Payments - Not for use by Credit Union Accounts  

		a. Duration specific rates

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	4.17 3.91	2.31 2.17	3.01 2.81	0.93 0.86	
12	2.74 2.56	1.74 1.63	2.12 1.99	1.00 0.94	
24	1.94 1.82	1.43 1.33	1.62 1.52	1.04 0.97	
36	1.66 1.56	1.31 1.23	1.44 1.35	1.05 0.98	
48	1.39 1.31	1.12 1.05	1.23 1.15	0.94 0.88	
60	1.18 1.11	0.97 0.90	1.05 0.98	0.82 0.76	
72	1.02 0.96	0.84 0.79	0.92 0.86	0.72 0.68	
84	0.91 0.85	0.76 0.71	0.81 0.77	0.65 0.61	
96	0.83 0.77	0.69 0.65	0.74 0.69	0.60 0.56	
108	0.75 0.70	0.64 0.60	0.68 0.63	0.55 0.52	
120	0.69 0.65	0.59 0.55	0.63 0.59	0.51 0.48	

		b. Composite term rates for all durations.  

14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
1.44 1.35	1.13 1.06	1.25 1.17	0.91 0.85	

6.	Monthly Premium Disability Insurance  (premium base = remaining principal balance)
  Rates per $1,000 of Remaining Principal Balance - Not for use by Credit Union Accounts.

6A.	Full Benefit Rates or the End of the Loan Term.  Rates per $1,000 of Remaining Principal Balance - Not for use by Credit Union Accounts

		a. Duration specific rates

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	4.26 3.99	2.37 2.22	3.08 2.87	0.95 0.88	
12	2.85 2.67	1.81 1.69	2.20 2.07	1.04 0.97	
24	2.09 1.95	1.53 1.43	1.74 1.63	1.11 1.05	
36	1.84 1.73	1.46 1.36	1.60 1.50	1.16 1.09	
48	1.63 1.52	1.32 1.24	1.44 1.35	1.10 1.03	
60	1.47 1.38	1.22 1.14	1.32 1.23	1.03 0.97	
72	1.38 1.29	1.16 1.09	1.24 1.16	1.00 0.94	
84	1.31 1.23	1.12 1.05	1.19 1.12	0.98 0.92	
96	1.27 1.19	1.10 1.03	1.16 1.09	0.97 0.91	
108	1.24 1.16	1.08 1.02	1.14 1.07	0.97 0.91	
120	1.22 1.15	1.08 1.01	1.13 1.06	0.97 0.91	

		b. Composite term rates for all durations.  

14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
1.69 1.58	1.34 1.26	1.47 1.38	1.08 1.01	

6B.	Benefit Limited to the Lesser of 12 months or the End of the Loan Term.  Rates per $1,000 of Remaining Principal Balance - Not for use by Credit Union Accounts

		a. Duration specific rates

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	4.26 3.99	2.37 2.22	3.08 2.87	0.95 0.88	
12	2.85 2.67	1.81 1.69	2.20 2.07	1.04 0.97	
24	1.95 1.83	1.42 1.33	1.61 1.51	1.02 0.96	
36	1.58 1.48	1.23 1.15	1.35 1.26	0.95 0.89	
48	1.30 1.21	1.02 0.96	1.11 1.04	0.81 0.75	
60	1.09 1.02	0.87 0.82	0.95 0.88	0.69 0.65	
72	0.96 0.90	0.77 0.72	0.83 0.78	0.62 0.58	
84	0.86 0.81	0.70 0.66	0.75 0.70	0.56 0.53	
96	0.79 0.74	0.65 0.61	0.69 0.65	0.52 0.49	
108	0.74 0.69	0.61 0.57	0.64 0.61	0.49 0.46	
120	0.70 0.65	0.58 0.54	0.61 0.57	0.47 0.44	

		b. Composite term rates for all durations.  

14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
1.38 1.29	1.06 0.99	1.17 1.09	0.81 0.76	

6C.	Benefit Limited to the Lesser of 24 months or the End of the Loan Term.  Rates per $1,000 of Remaining Principal Balance - Not for use by Credit Union Accounts

		a. Duration specific rates

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	4.26 3.99	2.37 2.22	3.08 2.87	0.95 0.88	
12	2.85 2.67	1.81 1.69	2.20 2.07	1.04 0.97	
24	2.09 1.95	1.53 1.43	1.74 1.63	1.11 1.05	
36	1.78 1.67	1.41 1.32	1.54 1.45	1.12 1.05	
48	1.50 1.40	1.20 1.13	1.31 1.22	0.99 0.92	
60	1.28 1.20	1.04 0.98	1.13 1.05	0.86 0.81	
72	1.14 1.06	0.94 0.88	1.00 0.94	0.78 0.73	
84	1.03 0.96	0.85 0.80	0.91 0.85	0.72 0.67	
96	0.95 0.89	0.80 0.74	0.84 0.79	0.67 0.63	
108	0.89 0.83	0.75 0.70	0.79 0.74	0.63 0.59	
120	0.84 0.79	0.71 0.67	0.75 0.70	0.60 0.56	

		b. Composite term rates for all durations.  

14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
1.56 1.46	1.22 1.15	1.35 1.26	0.97 0.91	

6D.	Benefit Limited to the Lesser of 36 months or the End of the Loan Term.  Rates per $1,000 of Remaining Principal Balance - Not for use by Credit Union Accounts

a. Duration specific rates

Months	14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
6	4.26 3.99	2.37 2.22	3.08 2.87	0.95 0.88	
12	2.85 2.67	1.81 1.69	2.20 2.07	1.04 0.97	
24	2.09 1.95	1.53 1.43	1.74 1.63	1.11 1.05	
36	1.84 1.73	1.46 1.36	1.60 1.50	1.16 1.09	
48	1.60 1.49	1.28 1.20	1.41 1.32	1.08 1.00	
60	1.39 1.30	1.13 1.06	1.24 1.16	0.96 0.90	
72	1.25 1.17	1.03 0.96	1.11 1.04	0.88 0.83	
84	1.14 1.07	0.95 0.89	1.02 0.96	0.82 0.77	
96	1.06 0.99	0.89 0.83	0.95 0.89	0.77 0.72	
108	0.99 0.93	0.84 0.79	0.90 0.84	0.73 0.69	
120	0.94 0.88	0.81 0.75	0.85 0.80	0.70 0.66	

		b. Composite term rates for all durations.  

14
Retro	14
Non-Retro	30
Retro	30
Non-Retro	
1.64 1.53	1.29 1.21	1.42 1.33	1.04 0.97	

7.	Single Premium Unemployment Insurance  (Note – this is a per claim benefit, but is refreshable after a 31 day back to work event.) 

7A.	30 Day Retroactive, 6 Month Benefit – Without coverage for family leave:  
1.94 $2.15per $100 initial gross indebtedness per year.
7B.	30 Day Retroactive, 6 month Benefit - With coverage for family leave:  
$2.14 $2.34per $100 initial gross indebtedness per year.
7C.	30 Day Retroactive, 9 Month Benefit – Without coverage for family leave.  
2.48 $2.76per $100 Initial gross indebtedness per year.  
7D.	30 Day Retroactive, 9 Month Benefit – With coverage for family leave.  
2.68 $2.95per $100 initial gross indebtedness per year.  
7E.	90 Day lump sum benefit:  
$2.66 $2.79 per $100 initial gross indebtedness per year.

8.	Monthly Outstanding Balance Unemployment Insurance

8A.	30 Day Retroactive, 6 Month Benefit – Without coverage for family leave:  
$1.62 79 per $1,000 of remaining principal balance
$1.37 52 per $1,000 of remaining payments
8B.	30 Day Retroactive, 6 month Benefit - With coverage for family leave:  
$1.78 95 per $1,000 of remaining principal balance
$1.51 66 per $1,000 of remaining payments
8C.	30 Day Retroactive, 9 Month Benefit – Without coverage for family leave.  
$2.07 30 per $1,000 of remaining principal balance
$1.75 95 per $1,000 of remaining payments
8D.	30 Day Retroactive, 9 Month Benefit – With coverage for family leave.  
$2.23 46 per $1,000 of remaining principal balance
$1.89 $2.08 per $1,000 of remaining payments
8E.	90-day lump sum benefit:  
$2.22 33 per $1,000 of remaining principal balance
$1.88 97 per $1,000 of remaining payments

9.	Property – Dual Interest 

9A.	Single premium:
$2.18 per $100 Initial Gross Indebtedness per year.
9B.	Monthly outstanding balance:
$3.35 per $1,000 of remaining principal balance, $2.85 per $1,000 of remaining payments.

10.	Joint Life Factors for Life and Disability Coverages  Life and disability coverages may be offered on a joint life basis.  

10A.	For life coverage identified in Sections 1, 2, and 3.  The component based rate for joint lives, for the life insurance coverage listed in section 1, 2 and 3, is obtained by multiplying the listed single life rate by 1.65.
10B.	For life coverage identified in Sections 4, 5, and 6.  The component based rate for joint lives, for the disability insurance coverages listed in Section 4., 5., and 6., is obtained by multiplying the listed single life rate by 1.75.