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 2670.17 - Benchmark Number Six: Provisions for 30-Day Retroactive Credit Unemployment Insurance on an Open End Plan of Indebtedness, and Paying Minimum Monthly Payment

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 policy holder 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 retroactively to the first day of unemployment and while
				  the unemployment continues.
(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 or disability. 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 policy holder 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
					 article 5 (sections
					 2670.17-2670.20) and 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 article 5 (sections
					 2670.17-2670.20) and 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 article 5 (sections
					 2670.17-2670.20) and 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.