20-1610. Premiums for consumer credit insurance; approval or disapproval of rates

A. The consumer credit insurance charge to the debtor shall not exceed the premium for the particular coverage that is specified in the insurer's rate schedule on file with the director. If the premium is less than that specified in the rate schedule, the insurer shall charge the lesser amount.

B. A person shall not use in this state a schedule of premium rates or any revision of the schedule for consumer credit insurance unless the person has first filed the schedule or revision with the director and the director has approved the schedule or revision. A person shall file each schedule or revision with the director at least thirty days before using the schedule or revision. Unless the director issues an order affirmatively approving or disapproving the schedule or revision within thirty days after filing the schedule or revision, the schedule or revision is deemed approved. On written notice given within the thirty day period to the person making the filing, the director may extend the period for review up to fifteen additional days to enable the director to complete the review of the schedule or revision. The director shall disapprove the schedule or revision if in the director's opinion the premium rates charged or to be charged are excessive in relation to benefits that may be awarded. In determining whether to disapprove the schedule or revision the director shall accord due consideration to past and prospective loss experience within and outside this state, to underwriting practice and judgment and to all other factors relevant to the relationship between premium rates and benefits.

C. Rates for credit unemployment insurance are subject to section 20-1621.05.

D. If the director disapproves any schedule of premium rates or determines that approval once given should be withdrawn, the director shall so notify the insurer and thereafter the schedule shall not be used. The notice issued by the director shall specify the reason for the decision and advise the insurer of the hearing procedure prescribed by title 41, chapter 6, article 10.

E. Premiums in accordance with a schedule of rates filed with and approved by the director for consumer credit insurance shall be deemed not interest or as an amount in excess of permitted charges in connection with a loan or credit transaction, and any gain or advantage to a creditor arising from a premium or commission in the sale or provision of this insurance shall be deemed not interest or charges.