California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 4.10 - Rates for Credit Property Insurance and Credit Unemployment Insurance
Article 5 - Benchmark Provisions for Credit Unemployment Insurance
Section 2670.17 - Benchmark Number Six: Provisions for 30-Day Retroactive Credit Unemployment Insurance on an Open End Plan of Indebtedness, and Paying Minimum Monthly Payment

(a) When Coverage Is In Effect. Coverage is in effect from the time the certificate holder's account has a balance and continues as long as there is an open balance in the account(s). Insurance coverage will cease when the certificate holder's account does not reflect an open balance, and will be automatically reinstated when there is an open balance.

(b) Coverage Provided. The insurance covers the interests of the master policyholder and the certificate holder in connection with purchases under an account agreement. All benefits apply to account payments and will be paid to the master policy holder to pay off or reduce the certificate holder's debt. The insurer will pay the minimum monthly payment on the certificate holder's account if the certificate holder is unemployed for more than 30 consecutive days. After the 30-day waiting period benefits will be paid retroactively to the first day of unemployment and while the unemployment continues.

(c) Perils Insured. The insurer will pay benefits for loss of the certificate holder's employment income resulting from involuntary loss of employment, or unemployment due to labor disputes, strikes, or lockouts.

(d) Exclusions. Coverage will not apply to loss of income due to retirement or disability. Coverage will not apply to purchases made while the certificate holder is receiving benefits under the certificate holder's certificate.

(e) Limit of Liability. The insurance covers the interest of the master policy holder and the certificate holder up to the maximum(s) stated in the certificate of insurance. Coverage for any one account will be limited to the maximum amount per account as stated in the certificate of insurance. If the certificate holder has more than one account, the maximum limit stated in the certificate of insurance applies, and the total insurance provided under all of a certificate holder's accounts cannot exceed this amount.

(f) Eligibility. To be eligible for loss of employment income benefits, as of the effective date of the certificate the certificate holder must be insured under the plan and gainfully employed on a full-time basis in a nonseasonal occupation. To receive loss of employment income benefits, the certificate holder must verify that the certificate holder registered with the certificate holder's state's unemployment office or a recognized employment agency. Registration must begin within 15 days after the date of involuntary unemployment and continue for the entire period of the claim. Coverage will not be denied if the certificate holder does not qualify because the certificate holder's former employer was not required to contribute to the state unemployment fund. A certificate holder will be reeligible for unemployment benefits after the completion of payments under a loss of employment claim if the certificate holder has been gainfully employed on a full-time basis in a nonseasonal occupation for a period of 30 consecutive days.