Current through Register Vol. 54, No. 44, November 2, 2024
(a)
Life benefit plan. The
prima facie premium rate standards referenced in §
73.106 (relating to life insurance
rate standards) apply to a plan of credit life insurance benefits, if the plan
provides the features in paragraphs (1)-(3) and, if applicable, paragraph (4).
This plan shall be described in a group policy and group certificate or in an
individual policy.
(1) Single life coverage
or joint life coverage for all eligible debtors.
(2) A benefit payable upon death or upon TPD,
if TPD coverage applies, subject to any maximum dollar amount of coverage
specified in the group policy and group certificate or individual policy, equal
to any of the following:
(i) The actual gross
or net unpaid indebtedness at the time of death or commencement of TPD, in the
case of a closed end loan for a group policy of credit life insurance or credit
life insurance with a TPD benefit.
(ii) The greater of the scheduled gross or
net unpaid indebtedness, or the actual gross or net unpaid indebtedness, at the
time of death or commencement of TPD, in the case of a closed end loan for an
individual policy of credit life insurance or credit life insurance with a TPD
benefit.
(iii) The actual net
unpaid indebtedness at the time of death or commencement of TPD, in the case of
an open end loan .
(3) A
coverage period equal to the lesser of the following:
(i) The term of the indebtedness remaining at
the time coverage is elected.
(ii)
The term of the indebtedness remaining at the time coverage is elected to the
time the insured debtor attains an age at which the group policy and group
certificate or individual policy provides for coverage to terminate.
(iii) The term of the indebtedness remaining
at the time coverage is elected until truncated coverage terminates.
(4) If TPD coverage is provided, a
definition of TPD requiring that the debtor be totally and permanently and
continuously unable to engage in any occupation, employment or activity for
compensation or profit, for which the debtor is suited by education, training
or experience, according to the certification of a physician or podiatrist. The
physician or podiatrist's certification may be waived by the insurer if the
debtor has suffered the permanent loss of sight of both eyes, or the severance
of both hands, both feet or of one hand and one foot.
(b)
Alternate benefit plans.
Insurers may offer credit life insurance benefit plans and credit
life insurance with TPD benefit plans that differ from the plan described in
subsection (a). An alternate plan shall be described in a group policy and
group certificate, or in an individual policy, and shall conform to the
standards of section 7(b) of the act (40 P. S. §
1007.7(b)) and the
applicable standards of section 6 of the Group Life Insurance Law
(40
P. S. §
532.6). The premium rate
standards of §
73.106 apply to alternate benefit
plans.
This section cited in 31 Pa. Code §
73.106 (relating to life insurance
rate standards); 31 Pa. Code §
73.114 (relating to insurability
requirements); 31 Pa. Code §
73.115 (relating to benefit
exclusions); and 31 Pa. Code §
73.116 (relating to age
requirements).
