Current through Register Vol. 54, No. 44, November 2, 2024
(a)
Involuntary unemployment benefits
plans. The prima facie premium rate standards referenced in §
73.112 (relating to involuntary
unemployment insurance rate standards) apply to a plan of credit involuntary
unemployment insurance benefits, if the plan provides the features of
paragraphs (1)-(6). This plan shall be described in a group policy and group
certificate or in an individual policy.
(1)
Single involuntary unemployment coverage or joint involuntary unemployment
coverage for all eligible debtors.
(2) A monthly benefit payable upon
involuntary unemployment, 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 monthly
installment payments required under the contract of indebtedness, for closed
end loans.
(ii) The benefit amount
as provided in §
73.139(f)
(relating to credit insurance on open end loans), for open end loans.
(iii) The benefit amount as provided in
§
73.140(d)
(relating to credit insurance on closed end variable interest loans), for
closed end variable interest loans.
(iv) The benefit amount as provided in §
73.141(f)
(relating to credit insurance on lease transactions), for lease
transactions.
(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 or 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) An
elimination period as provided by the policy or certificate of 30 days
following the commencement of involuntary unemployment, with benefits becoming
payable on either a retroactive or nonretroactive basis.
(5) A definition of involuntary unemployment
requiring that the debtor be unemployed as a result of nonvoluntary termination
from a single job at which the debtor worked for a salary or wages for 30 or
more hours a week for at least the 12 months prior to the effective date of
insurance coverage. Unemployment due to a lockout as defined in §
73.103 (relating to definitions)
will be considered to be involuntary unemployment.
(6) A requirement that the payment of an
involuntary unemployment benefit shall cease at the scheduled expiration date
of the group certificate or individual policy, or at such time as the
indebtedness is prepaid.
(b)
Alternate benefit plans.
Insurers may offer credit involuntary unemployment insurance benefit
plans that differ from the plan described in subsection (a). Any 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)). The
premium rate standards of §
73.112 apply to alternate benefit
plans.
This section cited in 31 Pa. Code §
73.112 (relating to involuntary
unemployment insurance rate standards); 31 Pa. Code §
73.114 (relating to insurability
requirements); 31 Pa. Code §
73.115 (relating to benefit
exclusions); 31 Pa. Code §
73.116 (relating to age
requirements); and 31 Pa. Code §
73.118 (relating to initial
eligibility requirements).
