2023 New York Laws › ISC - Insurance › Article 34 - Insurance Contracts-Property/casualty › 3436*2 - Group Credit Unemployment Insurance and Individual Credit Unemployment Insurance.

* §  3436.  Group  credit unemployment insurance and individual credit
unemployment insurance. (a) Any policy of credit unemployment  insurance
which  covers  more  than  one  person  shall  be  deemed a group credit
unemployment policy.
(b)  No  policy  of  group  credit  unemployment  insurance,  and   no
certificate  thereunder,  shall  be  delivered or issued for delivery in
this state unless it conforms to the requirements of  this  section  and
section three thousand two hundred one of this chapter.
(c) A policy of group credit unemployment insurance may only be issued
to  a  creditor,  vendor, trustee, trustees or agent insuring a group of
debtors or vendees, all as defined and set forth in paragraph  three  of
subsection  (b)  of  section  four  thousand two hundred sixteen of this
chapter and under the same conditions and limitations and subject to the
definitions as specified therein; provided, however, that the amount  of
benefits payable with respect to any person insured thereunder shall not
at any time exceed:
(1)  in  all  cases  except  as  hereinafter  provided  the  lesser of
fifty-five thousand dollars and the total of payments  scheduled  to  be
paid by the person to whom credit has been extended;
(2)  in  the  case  of  a  loan  commitment  pursuant to a program for
defraying the cost of attendance of a student at a college or university
or at an elementary or secondary school providing education for  minors,
the  lesser  of  fifty-five thousand dollars and the total amount of the
unpaid balance of the scheduled periodic payments whether due or not due
and the amount of any outstanding loan commitment  pursuant  to  such  a
program;
(3)  in  the  case of a transaction secured by a real estate mortgage,
the lesser of one hundred ten thousand dollars and the total of payments
scheduled to be paid by the person to whom credit has been extended; or
(4) in all cases the amounts of the payment or payments due during the
period of unemployment of the covered  person,  excluding  such  amounts
which may have become due by acceleration or default.
(d) Benefits under a policy of group credit unemployment insurance may
be  provided  to  a  debtor  or  vendee  only  if  such debtor or vendee
qualifies for unemployment insurance benefits in this state pursuant  to
article  eighteen  of  the labor law or would qualify thereunder but for
exclusion therefrom pursuant to subdivision three, four, five, six,  ten
or  eleven of section five hundred eleven of the labor law, or by reason
of exhaustion of benefits or length of employment. No insurance  company
writing   a   policy  permitted  by  this  section  shall,  directly  or
indirectly,  through  an  agent  or  representative,  have  standing  to
participate  in  a  hearing or court proceeding in which the eligibility
for unemployment insurance benefits of an  insured  under  this  section
shall  be  in  controversy,  unless  the insured was an employee of said
company.
(e) Credit unemployment insurance may  be  written  separately  or  in
combination  with  all  or  any  of the kinds of insurance authorized in
paragraphs three, seven and twenty of  subsection  (a)  of  section  one
thousand one hundred thirteen of this chapter. The superintendent may by
regulation  prohibit  or  limit any combination based upon the amount of
insured indebtedness or the amount of premium. The premium rate for each
kind of insurance shall be disclosed and the total  premium  charge  for
the combination shall likewise be disclosed.
(f)  Acceptance  of  credit unemployment insurance by a debtor must be
voluntary and not a condition of extending credit nor a  factor  in  the
cost  of the credit agreement other than the cost of credit unemployment
insurance. The insurance agreement must be signed and  dated  separately
from  the request for credit and must clearly and conspicuously disclose

to the debtor (1) that the insurance coverage is  not  required  by  the
creditor and (2) the cost of the credit unemployment insurance.
(g)  (1) Any dividend hereafter apportioned on any participating group
insurance policy, or any rate reduction hereafter made or  continued  on
any  non-participating group policy for the first or any subsequent year
of insurance under any such policy heretofore or hereafter issued  under
this  section,  may  be applied to reduce the policyholder's part of the
cost of such policy, except that the excess, if any,  of  the  insured's
aggregate contribution under the policy over the net cost (gross premium
less  dividends or rate reductions) of the insurance shall be applied at
the discretion of the insurer either as a cash payment to the insured or
to reduce the insured's premium. If a  dividend  or  rate  reduction  is
payable  upon  termination  of  the policy the insurer shall either make
payment to the  insured  or  to  the  policyholder  upon  receipt  of  a
certification  from the policyholder that the dividend or rate reduction
will be distributed by the policyholder to the insureds  or  applied  to
reduce the insured's premium.
(2)  The provisions of paragraph one of this subsection shall apply to
New  York  residents  insured  under  a  policy  issued  in  any   other
jurisdiction to a group which is described in this section.
* NB There are 2 § 3436's