New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VII - Credit And Creditor Insurance › Part 187 - Credit Unemployment Insurance › Section 187.4 - Provisions of policies and certificates of insurance, disclosure to debtors

Current through Register Vol. 46, No. 28, July 10, 2024
(a) No credit
				unemployment insurance shall be effected on a debtor unless evidenced by an
				individual policy or, in the case of group insurance, by a certificate of group
				insurance, which policy or certificate shall be delivered to the debtor at the
				time the credit unemployment insurance becomes effective or within 30 days
				thereafter.
(b) If a separate
				charge is made to the debtor and the insurer excludes eligibility for insurance
				because of age, employment status or other conditions for eligibility, the
				debtor's application for insurance, the notice of proposed group insurance,
				credit unemployment insurance disclosure statement or equivalent form shall
				include a question related to each such condition which would identify the
				debtor's eligibility or ineligibility. If a separate charge is not made to the
				debtor and the insurer excludes eligibility for insurance because of age,
				employment status or other conditions for eligibility, the debtor's application
				for insurance, the notice of proposed group insurance, credit unemployment
				insurance disclosure statement or equivalent form shall include a question or
				declaration related to each condition which would identify the debtor's
				eligibility or ineligibility. Prior to the delivery of the policy or
				certificate, such application, notice, credit unemployment insurance disclosure
				statement or equivalent form shall be completed and signed by the
				debtor.
(c) Each such individual
				policy or certificate of group insurance shall, in addition to other
				requirements of law, set forth:
(1) the name
				and home office address of the insurer;
(2) the identity of the debtor by name or
				otherwise;
(3) the amount and term
				of the coverage which, in the case of group insurance, may be by description
				rather than by stated amount and term;
(4) the amount of premium for an individual
				policy or the identifiable charge to the debtor, if any, under a group policy,
				separate from any other charges;
(5) the circumstances and formula under which
				refunds of premiums or identifiable charges are payable pursuant to the
				provisions of section
				187.7 
				of this Part;
(6) a description of
				the insurance coverage including any exceptions, limitations or
				restrictions;
(7) a description of
				the eligibility requirements for the insurance, as referred to in subdivision
				(b) of this section; and
(8) a
				statement prominently displayed setting forth the following or its equivalent:
Your eligibility for this coverage may be dependent on your
				  being eligible to receive State unemployment benefits. A change in your
				  employment, may affect your eligibility for benefits. If you have any questions
				  you should contact the insurance company.
In addition it shall state that the benefits shall be paid to
				  the creditor to reduce or extinguish indebtedness to the creditor and, where
				  the amount of insurance exceeds any such indebtedness, that any such excess
				  shall be payable to the debtor or credited to the debtor's account. Any such
				  certificate shall appropriately describe the refund provision required pursuant
				  to section
				  187.8 
				  of this Part. The insurer shall be responsible to ascertain that appropriate
				  procedures are set up by the creditor to implement the above. Where
				  appropriate, the insurer may pay any such excess directly.