California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 4.10 - Rates for Credit Property Insurance and Credit Unemployment Insurance › Article 5 - Benchmark Provisions for Credit Unemployment Insurance › Section 2670.18 - Benchmark Number Seven: Provisions for 30-Day Non-Retroactive Credit Unemployment Insurance on an Open End Plan of Indebtedness, and Paying Minimum Monthly Payment for Six Months

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) When Coverage Is In Effect. Coverage is
				  in effect from the time the certificate holder's account has a balance and
				  continues as long as there is an open balance in the account(s). Insurance
				  coverage will cease when the certificate holder's account does not reflect an
				  open balance, and will be automatically reinstated when there is an open
				  balance.
(b) Coverage Provided. The
				  insurance covers the interests of the master policyholder and the certificate
				  holder in connection with purchases under an account agreement. All benefits
				  apply to account payments and will be paid to the master policyholder to pay
				  off or reduce the certificate holder's debt. The insurer will pay the minimum
				  monthly payment on the certificate holder's account if the certificate holder
				  is unemployed for more than 30 consecutive days. After the 30-day waiting
				  period, benefits will be paid beginning on the 31st day, and while the
				  unemployment continues, up to a maximum of six months.
(c) Perils Insured. The insurer will pay
				  benefits for loss of the certificate holder's employment income resulting from
				  involuntary loss of employment, or unemployment due to labor disputes, strikes,
				  or lockouts.
(d) Exclusions.
				  Coverage will not apply to loss of income due to retirement. Coverage will not
				  apply to purchases made while the certificate holder is receiving benefits
				  under the certificate holder's certificate.
(e) Limit of Liability. The insurance covers
				  the interest of the master policyholder and the certificate holder up to the
				  maximum(s) stated in the certificate of insurance. Coverage for any one account
				  will be limited to the maximum amount per account as stated in the certificate
				  of insurance. If the certificate holder has more than one account, the maximum
				  limit stated in the certificate of insurance applies, and the total insurance
				  provided under all of a certificate holder's accounts cannot exceed this
				  amount.
(f) Eligibility. To be
				  eligible for loss of employment income benefits, as of the effective date of
				  the certificate the certificate holder must be insured under the plan and
				  gainfully employed on a full-time basis in a nonseasonal occupation. To receive
				  loss of employment income benefits, the certificate holder must verify that the
				  certificate holder registered with the certificate holder's state's
				  unemployment office or a recognized employment agency. Registration must begin
				  within 15 days after the date of involuntary unemployment and continue for the
				  entire period of the claim. Coverage will not be denied if the certificate
				  holder does not qualify because the certificate holder's former employer was
				  not required to contribute to the state unemployment fund. A certificate holder
				  will be reeligible for unemployment benefits after the completion of payments
				  under a loss of employment claim if the certificate holder has been gainfully
				  employed on a full-time basis in a nonseasonal occupation for a period of 30
				  consecutive days.
1. New
					 section filed 3-10-2003; operative 4-9-2003. Submitted to OAL for printing only
					 pursuant to Government Code section
					 11343.8 as
					 a regulation that establishes rates in accordance with Government Code section
					 11340.9(g)
					 (Register 2003, No. 11).
2. Change without regulatory effect
					 withdrawing and repealing section pursuant to settlement agreement in Consumer
					 Credit Insurance Association v. John Garamendi (California Superior Court No.
					 03CS00533) filed 5-27-2004 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2004, No. 22).
3. New section filed 4-28-2006;
					 operative 5-28-2006. Submitted to OAL for printing only pursuant to Government
					 Code section
					 11343.8 as
					 a regulation that establishes rates in accordance with Government Code section
					 11340.9(g)
					 (Register 2006, No. 17).
4. Change without regulatory effect
					 amending subsections (b), (d) and (f) filed 7-14-2021 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2021, No. 29). Filing deadline specified in Government
					 Code section
					 11349.3(a)
					 extended 60 calendar days pursuant to Executive Order
					 N-40-20.
Note: Authority cited: Sections
						779.21,
						779.36,
						12921 and
						12926,
						Insurance Code; Credit Insurance General Agents Association v. Payne, 16 Cal.3d
						651 (1976); and 20th Century v. Garamendi, 8 Cal.4th 216 (1994). Reference:
						Sections
						779.36,
						1861.01 and
						1861.05,
						Insurance Code.