N.Y. ISC Law § 3436*2 — New York Code / Act ISC / Article 34 / Section 3436*2
Group credit unemployment insurance and individual credit unemployment insurance
Status: in_force

* § 3436. Group credit unemployment insurance and individual credit\nunemployment insurance. (a) Any policy of credit unemployment insurance\nwhich covers more than one person shall be deemed a group credit\nunemployment policy.\n  (b) No policy of group credit unemployment insurance, and no\ncertificate thereunder, shall be delivered or issued for delivery in\nthis state unless it conforms to the requirements of this section and\nsection three thousand two hundred one of this chapter.\n  (c) A policy of group credit unemployment insurance may only be issued\nto a creditor, vendor, trustee, trustees or agent insuring a group of\ndebtors or vendees, all as defined and set forth in paragraph three of\nsubsection (b) of section four thousand two hundred sixteen of this\nchapter and under the same conditions and limitations and subject to the\ndefinitions as specified therein; provided, however, that the amount of\nbenefits payable with respect to any person insured thereunder shall not\nat any time exceed:\n  (1) in all cases except as hereinafter provided the lesser of\nfifty-five thousand dollars and the total of payments scheduled to be\npaid by the person to whom credit has been extended;\n  (2) in the case of a loan commitment pursuant to a program for\ndefraying the cost of attendance of a student at a college or university\nor at an elementary or secondary school providing education for minors,\nthe lesser of fifty-five thousand dollars and the total amount of the\nunpaid balance of the scheduled periodic payments whether due or not due\nand the amount of any outstanding loan commitment pursuant to such a\nprogram;\n  (3) in the case of a transaction secured by a real estate mortgage,\nthe lesser of one hundred ten thousand dollars and the total of payments\nscheduled to be paid by the person to whom credit has been extended; or\n  (4) in all cases the amounts of the payment or payments due during the\nperiod of unemployment of the covered person, excluding such amounts\nwhich may have become due by acceleration or default.\n  (d) Benefits under a policy of group credit unemployment insurance may\nbe provided to a debtor or vendee only if such debtor or vendee\nqualifies for unemployment insurance benefits in this state pursuant to\narticle eighteen of the labor law or would qualify thereunder but for\nexclusion therefrom pursuant to subdivision three, four, five, six, ten\nor eleven of section five hundred eleven of the labor law, or by reason\nof exhaustion of benefits or length of employment. No insurance company\nwriting a policy permitted by this section shall, directly or\nindirectly, through an agent or representative, have standing to\nparticipate in a hearing or court proceeding in which the eligibility\nfor unemployment insurance benefits of an insured under this section\nshall be in controversy, unless the insured was an employee of said\ncompany.\n  (e) Credit unemployment insurance may be written separately or in\ncombination with all or any of the kinds of insurance authorized in\nparagraphs three, seven and twenty of subsection (a) of section one\nthousand one hundred thirteen of this chapter. The superintendent may by\nregulation prohibit or limit any combination based upon the amount of\ninsured indebtedness or the amount of premium. The premium rate for each\nkind of insurance shall be disclosed and the total premium charge for\nthe combination shall likewise be disclosed.\n  (f) Acceptance of credit unemployment insurance by a debtor must be\nvoluntary and not a condition of extending credit nor a factor in the\ncost of the credit agreement other than the cost of credit unemployment\ninsurance. The insurance agreement must be signed and dated separately\nfrom the request for credit and must clearly and conspicuously disclose\nto the debtor (1) that the insurance coverage is not required by the\ncreditor and (2) the cost of the credit unemployment insurance.\n  (g) (1) Any dividend hereafter apportioned on any participating group\ninsurance policy, or any rate reduction hereafter made or continued on\nany non-participating group policy for the first or any subsequent year\nof insurance under any such policy heretofore or hereafter issued under\nthis section, may be applied to reduce the policyholder's part of the\ncost of such policy, except that the excess, if any, of the insured's\naggregate contribution under the policy over the net cost (gross premium\nless dividends or rate reductions) of the insurance shall be applied at\nthe discretion of the insurer either as a cash payment to the insured or\nto reduce the insured's premium. If a dividend or rate reduction is\npayable upon termination of the policy the insurer shall either make\npayment to the insured or to the policyholder upon receipt of a\ncertification from the policyholder that the dividend or rate reduction\nwill be distributed by the policyholder to the insureds or applied to\nreduce the insured's premium.\n  (2) The provisions of paragraph one of this subsection shall apply to\nNew York residents insured under a policy issued in any other\njurisdiction to a group which is described in this section.\n  * NB There are 2 § 3436's\n