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 2670.20 - Benchmark Number Nine: Provisions for 30-Day Non-Retroactive Credit Unemployment Insurance on an Open End Plan of Indebtedness, and Paying Outstanding Balance up to Policy Limit

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 account has an open balance and continues as long
				  as there is an open balance in the certificate holder's account(s). The
				  insurance 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. The insurer
				  will pay benefits for loss of employment income of the certificate holder
				  resulting from involuntary unemployment. The benefits payable will apply to
				  account payments. The benefit provided will be the amount of the outstanding
				  balance as of the date of loss, or the maximum amount per account indicated in
				  the certificate, whichever is less. Benefits will be paid after expiration of
				  the 30-day waiting period specified in the certificate.
(c) Perils Insured. The insurer will pay a
				  loss of employment income benefit if the certificate holder (1) has an
				  involuntary loss of employment; or (2) is unemployed due to labor disputes; and
				  (3) remains involuntarily unemployed for longer than the benefit waiting period
				  of 30 days.
(d) Exclusions. There
				  is no coverage for loss of income due to retirement. Coverage will not apply to
				  purchases made by the certificate holder during the claim period.
(e) Limit of Liability. The insurance covers
				  the interests of the master policyholder and the certificate holder up to the
				  maximum(s) stated in the certificate. Coverage for any one account will be
				  limited to the maximum amount per account as shown in the certificate. If the
				  certificate holder has more than one account, the maximum limit shown in the
				  certificate 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, the
					 certificate holder must be insured under the plan and gainfully employed on a
					 full-time basis in a nonseasonal occupation at the time of loss. To receive
					 loss of income benefits, the certificate holder must verify during the
					 specified period of unemployment that the certificate holder registered with
					 the certificate holder's state 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 for state unemployment
					 benefits because the certificate holder's former employer was not required to
					 contribute to the state unemployment fund.
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 subsection (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.