R590. Insurance, Administration.R590-108. Interest Rate During Grace Period or Upon Reinstatement of Policy.
R590-108-1. Authority.
This rule is promulgated by the commissioner pursuant to Sections 31A-2-201, 31A-22-402, and 31A-22-407.
R590-108-2. Purpose and Scope.
(1) The purpose of this rule is to establish the interest rate an insurer may charge on premiums due under a life insurance or annuity contract during a grace period or upon subsequent reinstatement of the contract.
(2) This rule applies to an insurer offering a life insurance policy or annuity contract.
R590-108-3. Definitions.
Terms used in this rule are defined in Section 31A-1-301.
R590-108-4. Rule.
The interest rate an insurer may charge during a grace period on overdue premium or subsequent reinstatement of a life insurance policy or annuity contract shall be the rate set in the policy or contract, except that:
(1) the interest rate may not exceed the interest rate in the policy loan provision in the policy; or
(2) in the absence of a policy loan provision, the interest rate may not exceed the maximum interest rate under Section 31A-22-420.
R590-108-5. Severability.
If any provision of this rule, Rule R590-108, or its application to any person or situation is held invalid, such invalidity does not affect any other provision or application of this rule that can be given effect without the invalid provision or application. The remainder of this rule shall be given effect without the invalid provision or application.
KEY: insurance companies
Date of Last Change: November 8, 2021
Notice of Continuation: April 1, 2022
Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-22-402; 31A-22-407
