Current through Register Vol. XLI, No. 38, September 20, 2024
7.1. Each
insurer filing rates for credit unemployment insurance shall include in its rate
filing with the Commissioner the appropriate rate formula upon which its rates are
based, including a provision for anticipated losses. Anticipated losses that develop
or are expected to develop a loss ratio of not less than sixty percent (60%) shall
be presumed reasonable. Anticipated losses may include an amount for fluctuation in
loss due to catastrophe based on the experience of at least the latest nine (9)
policy years or as long as the company has been writing this line of
business.
7.2. Credit unemployment
insurance policies must contain benefits at least as favorable to insureds as the
provisions below:
7.2.a. Coverage for unemployment
for any reason, except that coverage may be excluded for:
7.2.a.1. Voluntary forfeiture of salary, wage or
other employment income;
7.2.a.2.
Resignation;
7.2.a.3.
Retirement;
7.2.a.4. General
strike;
7.2.a.5. Illegal walk
out;
7.2.a.6. War;
7.2.a.7. Separation from the military;
7.2.a.8. Willful misconduct or criminal misconduct
or unlawful behavior; and
7.2.a.9.
Disability caused by injury, sickness or pregnancy.
7.2.b. For credit unemployment insurance that
provides for a monthly benefit in the event of unemployment, benefits must start
after a waiting period of not longer than thirty (30) days but need not be
retroactive to the first day of unemployment and must have a maximum benefit period
that is no shorter than six (6) months.
7.3. Credit unemployment insurance policies may
not contain eligibility requirements more restrictive than the restrictions below:
7.3.a. Exclusion from qualification for coverage:
7.3.a.1. Self employed individuals;
7.3.a.2. Workers in seasonal or temporary jobs,
defined as jobs designed to last six (6) consecutive months or less; and,
7.3.a.3. Debtors who have been notified either
orally or in writing of any layoff or of employment termination either now or within
the next sixty (60) days. This exclusion must be disclosed to all prospective
insureds.
7.3.b. No
employment requirement more restrictive than one requiring that the debtor be
employed full-time on the effective date of coverage for at least twelve (12)
consecutive months prior to the effective date of coverage. "Full time" means a
regular work week of not less than thirty (30) hours.
7.3.c. An age restriction providing that no
insurance will become effective on debtors on or after the attainment of age
sixty-six (66) and that all insurance will terminate upon attainment by the debtor
of age sixty-six (66).
