Washington state's insurance commissioner unveiled a new regulation that requires credit life and disability insurers to pay out at least 60 cents for each dollar they collect. Credit insurers currently pay out an average 38 cents per dollar.

Insurance Commissioner Mike Kreidler wants consumers to get a more reasonable benefit for the premiums they're paying. He said consumers complained to his office of unpaid or insufficiently paid claims, according to the Seattle Post-Intelligencer. Companies offering credit insurance are keeping, on average, almost two-thirds of the premiums they are collecting, Kreidler claimed.

The regulation also requires providers such as dealers to disclose that the insurance isn't required for credit approval.

In a letter to Kreidler, dealer representatives said finance departments would stop offering credit insurance if the commissions were cut because selling it can be "difficult and time-consuming." It also only gets about 7 to 8 percent penetration in F&I, according to Consumers Marketing Group.