The Impact of Rate Regulations on Sales Practices

  • John M. Barron
  • Michael E. Staten
Part of the Innovations in Financial Markets and Institutions book series (IFMI, volume 10)

Abstract

States do not directly regulate the premium rates for credit life insurance.1 However, states do substantially influence prevailing rates in the following manner: each state establishes what are known as prima facie rates, which are the maximum rates an insurance company can charge in that state without formally justifying the need for a higher rate. As a consequence, prima facie rates often serve as de facto determinants of the maximum premium rates charged in a particular state.

Keywords

Income Marketing stratifIcation 

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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • John M. Barron
    • 1
  • Michael E. Staten
    • 2
  1. 1.Department of Economics, Krannert Graduate School of ManagementPurdue UniversityUSA
  2. 2.Credit Research Center, Krannert Graduate School of ManagementPurdue UniversityUSA

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