THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, July 14, 1994 TAG: 9407140745
SECTION: BUSINESS PAGE: D01 EDITION: FINAL
LENGTH: Short : 24 lines
SCC to consider insurance rate cuts: Virginia's Bureau of Insurance asked the State Corporation Commission to cut the rates charged for insurance policies that promise to repay debts if borrowers become ill or die. The insurance bureau wants cuts of 13.75 percent in the rates charged for credit life insurance and cuts of about 12 percent in credit accident and sickness insurance. State regulators began cracking down on credit insurance in 1992, after studies showed insurers were collecting bigger premiums than state law allows. The proposed rates are designed to ensure that at least 60 cents of every premium dollar the insurers collect goes to pay claims, compared with the old rate of 50 cents.
KEYWORDS: VIRGINIA STATE CORPORATION INSURANCE
by CNB