Ohio Administrative Code › Title 3901 - Department of Insurance › Chapter 3901-1 - General Provisions › Section 3901-1-14 - Credit life and credit accident health insurance

Current through all regulations passed and filed through July 1, 2024
(A) Purpose
The purpose of this rule is to protect the interests of debtors
				and the public in Ohio by providing a framework for the transaction of credit
				life and credit accident and health insurance that ensures a complicated
				product is carefully and thoughtfully constructed and administered.
(B) Authority
This rule is promulgated pursuant to the authority vested in
				the superintendent under section
				3901.041 of the Revised
				Code.
(C) Applicability
This rule is issued pursuant to Chapter 3918. of the Revised
				Code regulating credit life insurance and credit accident and health insurance
				and is applicable to all policies, riders, applications for insurance, notices
				of proposed insurance, certificates of insurance and endorsements providing
				credit life insurance and credit accident and health insurance issued or
				renewed on or after November 1, 1983 in the state of Ohio.
Certificates, notices of proposed insurance and premium rates
				applicable in connection with existing group policies of credit insurance
				
									are to
				be conformed to the requirements of this rule not later than the anniversary
				date of the group policy next following the effective date of this rule.
No existing group credit life or group credit accident and
				health policy presently in force in Ohio will be rewritten or redated so as to
				delay or avoid the effect of this rule.
Any policy issued to replace an existing policy of credit
				insurance or any amendment to any existing policy of credit insurance
				
									is to
				be ignored for the purpose of determining the anniversary if such change is
				made after July 1, 1983.
(D)
			 Filing and approval, disclosure
Section 3918.07 of the Revised Code provides that all policies,
				certificates of insurance, notices of proposed insurance, applications for
				insurance, endorsements and riders providing coverage on residents of Ohio
				
									are to
				be filed with the superintendent of insurance and that
				
									the
				superintendent may disapprove any such form.
(1) No individual or group policy of credit
			 life insurance or credit accident and health insurance
			 
									including no application, binder,
			 endorsement, rider, certificate of group insurance, notice of proposed
			 insurance, or other form pertaining to credit life insurance or credit accident
			 and health insurance under such policy 
									are to be
			 issued for delivery or used in this state, on or after the effective date of
			 this rule unless such forms and the premium rates and refund formulas
			 
									therefore have been filed with the superintendent of
			 insurance and approved prior to such issuance or use and have not been
			 subsequently disapproved in accordance with division (B) of section
			 3918.07 of the Revised
			 Code.
(2) If a group policy of
			 credit life insurance or credit accident and health insurance:
(a) Has been delivered in this state before
			 the effective date of this rule, or
(b) Delivered in another state before or
			 after the effective date of this rule-
The insurer 
											is required to file only the group certificate
				and notice of proposed insurance as specified in divisions (B) and (D) of
				section 3918.06 of the Revised Code and
				such forms 
											are to be approved by the superintendent if they
				conform with the requirements of Chapter 3918. of the Revised Code and this
				rule, and if the schedules of premium rates applicable to the insurance
				evidenced by such certificate or notice are not in excess of the standards set
				forth in this rule. Provided, however, the premium rate in effect on existing
				group policies may be continued until the first policy anniversary date
				following the effective date of this rule.
(3) Division (D) of section
			 3918.06 of the Revised Code
			 provides that the copy of the application for, or notice of, proposed insurance
			 
									is
			 separate and apart from the credit instrument unless the information required
			 "is prominently set forth therein." The copy of the application for, or notice
			 of, proposed insurance 
									is deemed to be prominently set forth in the
			 credit instrument if set forth in a separate provision on the face or reverse
			 in type at least equal in size and prominence to the type used for the other
			 provisions; provided that if the same is set forth on the reverse of the credit
			 instrument, reference 
									is to be made on the face of the instrument and
			 provided further that the name of the debtor proposed for insurance, any
			 figures relating to the amount and term of coverage, and the rate of amount of
			 payment for insurance by the debtor need not be contained in a separate
			 provision of the instrument, but may be set forth elsewhere in the
			 instrument.
(4)
(a) The disclosure required by paragraph
			 (D)(3) of this rule 
										is to be made to the debtor at the time of the
			 debtor's application for credit life or credit accident and health insurance
			 (excluding non-contributory insurance) in connection with a credit transaction,
			 and before the debtor becomes obligated to purchase such insurance.
(b) The form(s) containing the disclosure
			 
										are to
			 be filed with the superintendent of insurance and the disclosure language
			 
										is
			 subject to disapproval pursuant to section
			 3918.07 of the Revised
			 Code.
(c) Additional disclosure
			 
										is to
			 be made using the exact form set forth in appendix I to this rule.
(5) If a creditor makes available
			 to the debtors, more than one plan of credit life insurance or more than one
			 plan of credit accident and health insurance, all debtors must be informed of
			 all such plans applicable to the type of loan.