n | | |
Sp = ∑ (Op/10) x (It/Ii) |
t = 1 | | |
Sp = Single premium per one hundred dollars of initial insured net debt.
Op = Sixty cents or ninety-six cents, the prima facie life insurance premium rate per one thousand dollars for monthly outstanding balance coverage from subsection (1) of this section.
It = The scheduled amount of insurance for month t.
Ii = Initial amount of insurance. For a net insurance policy, Ii equals the initial principal balance of the loan.
n = The number of months in the term of the insurance.
(3) If an insurer provides benefits that are different than those described in this section, premium rates for those benefits must be actuarially consistent with rates in this section.