New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 187 - Credit Unemployment Insurance › Section 187.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For the purpose of this regulation:
(a) Credit unemployment insurance means
				insurance on a debtor in connection with a specified loan or other credit
				transaction within the State to provide payment to a creditor in the event of
				involuntary unemployment of the debtor for the installment payments or other
				periodic payments becoming due while the debtor is involuntarily
				unemployed.
(b) Employment shall
				mean any service under any contract of employment for hire, express or implied,
				written or oral, and shall include service as a commissioned salesperson. For
				the purposes of this Part, such term shall include service outside of this
				State, including locations in a foreign country. For the purposes of this Part,
				such term shall include agricultural labor, railroad service and maritime
				service. For the purposes of this Part, any exclusion set forth in section 511  of the
				Labor Law shall be an exclusion from such term.
(c) Unemployment shall mean the total lack of
				any employment for a period of seven calendar days. Such term shall not include
				the period of seven consecutive weeks beginning with the day after employment
				ceases as a result of a strike, lockout or other industrial controversy. Such
				term shall not include voluntary separation from employment, termination from
				employment for misconduct, or termination from employment for commission of
				criminal acts. For the purposes of this Part, the interpretations placed upon
				the terms industrial controversy, voluntary separation, and misconduct within
				the context of section 593  of the Labor Law shall be
				utilized.
(d) Creditor means a
				lender, lessor or vendor to whom payment of an underlying indebtedness is
				arranged through a credit transaction, or any successor to the right, title or
				interest of any such lender, vendor, or lessor; an affiliate, associate or
				subsidiary of any of the foregoing or any director, officer or employee of any
				of them, or any other person in any way associated with any of them, and a
				trustee, trustees, or agent designated by two or more creditors as provided in
				section
				187.5(i) 
				of this Part; creditor includes an intended creditor pursuant to a
				"program".
(e) Debtor means a
				borrower of money (or guarantor of such borrower), lessee, vendee or purchaser,
				any of whom is party to a credit transaction; debtor includes an intended
				borrower pursuant to a "program".
(f) Program means 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 required for minors, which program
				includes provision for immediate periodic payments by the parent or guardian of
				such student and a loan commitment to such parent or guardian by a financial
				institution, or by or on behalf of a college or university or such elementary
				or secondary school to defray the cost of attendance at such college or
				university or elementary or secondary school in excess of the accumulated
				periodic payments by the parent or guardian.
(g) Indebtedness means the amount payable by
				a debtor to a creditor in connection with a loan or other credit transaction,
				including rentals payable under the lease of real or personal
				property.
(h) Identifiable charge
				means the amount a creditor charges a debtor or collects from the debtor
				specifically for credit unemployment insurance in addition to any other stated
				charges, including interest or discount, permitted by the New York State
				Banking, Uniform Commercial Code, General Obligations and Personal Property
				laws. Additionally, it will be considered that the debtor is charged a specific
				amount for the insurance, if there is a differential in finance, interest,
				service or other similar charge made to debtors who are in like circumstances,
				except for their insured or noninsured status.
(i) Package means credit unemployment
				insurance offered in conjunction with any combination of the kinds of insurance
				authorized in paragraph (3), (7) or (20) of subdivision (a) of section 1113  of the Insurance Law in such manner
				that the debtor may only elect either the entire combination or no
				coverage.