Setting Credit Insurance Rates

Before you can set credit insurance rates, you must select an insurance type from the pull-down menu in the Insurance Type box.

Once you have selected the insurance type, enter the necessary percentage rates and dollar amounts. The amounts are described as follows:

• Prima Facie %: This is the percentage amount of the Prima Facie value of the policy's premiums. If your state or company allows you to charge more, adjust the Prima Facie percentage appropriately. For example, if you are permitted to charge 25% more than the standard rate for Single Gross Life, your Prima Facie % would be 125%.
• Reserve %: This is the percentage of the premium which you, the dealer, will keep.
• Max. Amount: This is the maximum amount the insurance will cover.
• Monthly Max: This is the maximum monthly payment your insurance will cover. This is generally used for disability insurance.
• Max Term: This is the maximum term the insurance will cover.

A rate table will appear (if required) only after you have completed an entry in the Max. Term box. If this table appears, fill in each month with the appropriate insurance factors making sure you enter the rate in charge per $1.00 of coverage. You may use the up and down arrows to navigate the rate table. Rates will be supplied by your state or insurance company.

Note: Some insurance companies provide rates per $100.00 of coverage. Since the software expects rates per $1.00 of coverage, you may need to convert the rate by moving the decimal point two places to the left.