"      Section 2. That § 62-1-1.2 be amended to read as follows:

     62-1-1.2.   For the purposes of this chapter, impairment shall be determined by a medical impairment rating, expressed as a percentage to the affected body part, using the Guides to the Evaluation of Permanent Impairment established by the American Medical Association, fourth fifth edition, June 1993 November 2000 . ".

"      Section 1. That § 58-19-1 be amended to read as follows:

     58-19-1.   The purpose of this chapter is to promote the public welfare by regulating credit life insurance, credit health insurance, and credit unemployment insurance , and credit property insurance . Nothing in this chapter is intended to prohibit or discourage reasonable competition. The provisions of this chapter shall be liberally construed.

     Section 2. That § 58-19-2 be amended to read as follows:

     58-19-2.   Terms used in this chapter mean:

     58-19-34.   The director may promulgate rules pursuant to chapter 1-26 as deemed appropriate for the supervision of this chapter. The rules may cover any type of credit insurance including credit life, credit health, credit unemployment, and credit property insurance.

     Section 4. That § 58-19-44 be amended to read as follows:

     58-19-44.   Within thirty days after the filing of any credit unemployment or credit property insurance policy, certificate of insurance, notice of proposed insurance, application for insurance, endorsement, or rider, the director shall disapprove any such form if the premium rates charged or to be charged are excessive in relation to benefits , or if such form contains provisions which are unjust, unfair, inequitable, misleading, deceptive, or encourage misrepresentation of the coverage, or are contrary to any provision of this title . The director shall adopt standards for premium rates by rules promulgated pursuant to chapter 1-26. The standards for premium rates adopted by the director shall result in a target loss ratio of fifty percent or such lower loss ratio as designated by the director to afford a reasonable allowance for actual and expected loss experience, general and administration expenses, reasonable acquisition expenses, reasonable creditor compensation, investment income, premium taxes, licenses, fees, assessments, and reasonable insurer profit. For the purposes of this section loss experience includes paid losses, paid loss adjustment expense, any change in case reserves, change in incurred but not reported losses, and any special considerations for catastrophe or comprehensive coverage.

     58-19-45.   With regard to credit unemployment insurance , the basic test of the reasonableness of the relation of benefits to the premium charged shall be the development of an anticipated loss ratio of claims incurred to premiums earned of at least fifty percent. If the total current expected expenses, including acquisition expenses, exceed fifty percent of the premium dollar, this shall be considered prima facie evidence that a company intends to write credit business at a loss ratio which is not in compliance with this rule. Commissions and credit property insurance, commissions , including retrospective premium refunds, bonuses, or acquisition expenses, may not exceed forty percent. If any company is not in compliance with this rule, it shall show just cause why the premium rates as filed should not be disapproved.

     Section 6. That § 58-19-46 be amended to read as follows:

     58-19-46.   In approving or establishing the premium rates for credit unemployment insurance and credit property insurance , the department division shall review the insurance company's actuarial data to assure that the rates are fair and reasonable. The insurance commissioner director shall hire or contract with a qualified actuary to review the data. The insurance department division shall obtain reimbursement from the insurance company for the reasonable cost of the actuarial review of rates prior to approving such rates. "

Margaret Nickels