reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.109 - A and H insurance rate standards

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Prima facie A&H
				rates
. Premium rates for credit A and H insurance benefits, as
				described in §
									73.107(a)
				(relating to accident and health insurance benefits), may not exceed the prima
				facie premium rates referenced in this section and published in the
Pennsylvania Bulletin
, unless higher premium rates are
				approved under §
									73.122 (relating to deviated
				rates). Premium rates for benefits that differ from those benefits described in
				§
									73.107(a) may not
				exceed premium rates that are actuarially consistent with the prima facie
				premiums rates referenced in this section and published in the
Pennsylvania Bulletin
.
(b)
Symbols
. The symbols
				used in this section shall have the following meanings:
(1) n = coverage period in months.
(2) Opn = monthly
				prima facie premium rate per $1,000 of gross unpaid indebtedness.
(3) SPn = single
				premium prima facie premium rate per $100 of initial insured gross
				indebtedness, as defined in §
										73.103 (relating to definitions),
				repayable in n equal monthly installments.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.110 - Involuntary unemployment insurance benefits

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Involuntary unemployment benefits
				plans.
The prima facie premium rate standards referenced in §
									73.112 (relating to involuntary
				unemployment insurance rate standards) apply to a plan of credit involuntary
				unemployment insurance benefits, if the plan provides the features of
				paragraphs (1)-(6). This plan shall be described in a group policy and group
				certificate or in an individual policy.
(1)
				Single involuntary unemployment coverage or joint involuntary unemployment
				coverage for all eligible debtors.
(2) A monthly benefit payable upon
				involuntary unemployment, subject to any maximum dollar amount of coverage
				specified in the group policy and group certificate or individual policy, equal
				to any of the following:
(i) The monthly
				installment payments required under the contract of indebtedness, for closed
				end loans.
(ii) The benefit amount
				as provided in §
											73.139(f)
				(relating to credit insurance on open end loans), for open end loans.
(iii) The benefit amount as provided in
				§
											73.140(d)
				(relating to credit insurance on closed end variable interest loans), for
				closed end variable interest loans.
(iv) The benefit amount as provided in §
											73.141(f)
				(relating to credit insurance on lease transactions), for lease
				transactions.
(3) A
				coverage period equal to the lesser of the following:
(i) The term of the indebtedness remaining at
				the time coverage is elected.
(ii)
				The term of the indebtedness remaining at the time coverage is elected to the
				time the insured debtor attains an age at which the group policy or group
				certificate or individual policy provides for coverage to terminate.
(iii) The term of the indebtedness remaining
				at the time coverage is elected until truncated coverage
				terminates.
(4) An
				elimination period as provided by the policy or certificate of 30 days
				following the commencement of involuntary unemployment, with benefits becoming
				payable on either a retroactive or nonretroactive basis.
(5) A definition of involuntary unemployment
				requiring that the debtor be unemployed as a result of nonvoluntary termination
				from a single job at which the debtor worked for a salary or wages for 30 or
				more hours a week for at least the 12 months prior to the effective date of
				insurance coverage. Unemployment due to a lockout as defined in §
										73.103 (relating to definitions)
				will be considered to be involuntary unemployment.
(6) A requirement that the payment of an
				involuntary unemployment benefit shall cease at the scheduled expiration date
				of the group certificate or individual policy, or at such time as the
				indebtedness is prepaid.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.111 - Involuntary and voluntary unemployment insurance requirements

Current through Register Vol. 54, No. 28, July 13, 2024
A plan of credit involuntary unemployment insurance and a
				  group policy and group certificate or an individual policy describing the plan
				  shall comply with the following:
(1)
Joint coverage basis
. If joint unemployment coverage is
				provided, it shall be provided either on the basis of each debtor being insured
				for 100% of the monthly unemployment payment or on the basis of each debtor
				being insured for a specified portion of the monthly unemployment payment, with
				the total of these portions equal to 100% of the monthly unemployment
				payment.
(2)
Joint
				contract
.
(i) If joint unemployment
				coverage is provided, a group certificate or individual policy providing joint
				unemployment coverage shall be issued. Insurers may not issue two single
				unemployment coverage group certificates or two single individual
				policies.
(ii) The benefit payable
				in the case of simultaneous unemployment of both insureds may not exceed the
				benefit that would be payable if coverage were provided on only one
				debtor.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.113 - Voluntary unemployment insurance rate standards

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Debtor insurance charge
.
				The amount charged a debtor by a creditor for credit voluntary unemployment
				insurance may not exceed the premiums charged by the insurer, as computed at
				the time the charge to the debtor is determined.
(b)
Premium rates based on loss
				ratio
. The premium rates shall be based on a loss ratio not less than
				the loss ratio standard in §
									73.123 (relating to loss ratio
				standards).
(c)
Actuarial
				memorandum filing
. The insurer shall include, with the rate filing
				made under §
									73.136(a)
				(relating to filing of forms and rates), an actuarial memorandum which contains
				the basis of the claim costs used in computing the premium rates.
(d)
Joint rates
.
(1) When each debtor is insured for 100% of
				the monthly unemployment benefit, the premium rates for joint credit voluntary
				unemployment insurance shall equal 180% of the premium rates for single
				voluntary unemployment coverage.
(2) When each debtor is insured for a
				specific portion of the monthly unemployment benefit, the premium rates for
				joint credit voluntary unemployment insurance shall equal 100% of the premium
				rates for single voluntary unemployment coverage.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.114 - Insurability requirements

Current through Register Vol. 54, No. 28, July 13, 2024
Plans of credit insurance as provided in §§
									73.104(a),
				  73.107(a) and
				  73.110(a)
				  (relating to life insurance and life insurance with TPD benefit; accident and
				  health insurance benefits; and involuntary unemployment insurance benefits) may
				  provide for either:
(1) An evidence of
				insurability requirement.
(2) No
				evidence of insurability requirement.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.115 - Benefit exclusions

Current through Register Vol. 54, No. 28, July 13, 2024
Exclusions may be contained in a credit insurance plan as
				  provided in §§
									73.104(a),
				  73.107(a) and
				  73.110(a)
				  (relating to life insurance and life insurance with TPD benefit; accident and
				  health insurance benefits; and involuntary unemployment insurance
				  benefits).
(1) The following
				exclusions may also be contained in a life insurance plan or a life insurance
				with TPD benefit plan:
(i) Death due to
				suicide within 1 year of the effective date of coverage.
(ii) TPD due to intentionally self-inflicted
				injury.
(iii) A preexisting
				conditions exclusion due to a condition for which the insured debtor received
				medical advice, consultation, diagnosis or treatment from a physician or
				podiatrist within 6 months before the effective date of coverage and due to
				which death occurs or TPD commences within 6 months after the effective date of
				coverage. This exclusion applies only if and to the extent that the total
				amount of all insurance that would otherwise be subject to the preexisting
				conditions exclusion exceeds $1,000.
(iv) For the application of the exclusions
				contained in subparagraphs (i)-(iii), the effective date of coverage for each
				portion of the insurance attributable to a different advance under an open end
				loan, is the date on which the advance or charge occurs, or if later, the date
				on which coverage is elected.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.116 - Age requirements

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Debtor age provisions
. Plans of credit insurance as provided
				in §§
									73.104(a),
				73.107(a) and
				73.110(a)
				(relating to life insurance and life insurance with TPD benefit; A and H
				insurance benefits; involuntary unemployment insurance benefits) may provide
				for debtor age provisions not less favorable than any of the following:
(1) An age restriction making the debtor
				ineligible for coverage when one of the following applies:
(i) The debtor will have attained 65 years of
				age at the time the indebtedness is incurred.
(ii) The debtor will have attained 66 years
				of age on the scheduled maturity date of the indebtedness.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.117 - Employment eligibility requirements

Current through Register Vol. 54, No. 28, July 13, 2024
Plans of credit accident and health insurance as provided in
				  §
									73.107(a)
				  (relating to accident and health insurance benefits) may provide for
				  either:
(1) Any evidence of gainful
				employment requirement.
(2) No
				evidence of gainful employment requirement.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.118 - Initial eligibility requirements

Current through Register Vol. 54, No. 28, July 13, 2024
Plans of credit involuntary unemployment insurance as
				  provided in §
									73.110(a)
				  (relating involuntary unemployment insurance benefits) may provide for initial
				  eligibility requirements, whereby an insurer may choose to exclude from credit
				  involuntary unemployment coverage, one or more of the following:
(1) Unemployed individuals.
(2) Self-employed individuals.
(3) Military personnel.
(4) Workers in seasonal or temporary jobs
				which are designed to last 6 consecutive months or less.
(5) Debtors who have been notified of a
				layoff or of employment termination occurring within 60 days of the termination
				notification.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.119 - Combination coverage rate

Current through Register Vol. 54, No. 28, July 13, 2024
If an insurer combines two or more credit life, Credit A and
				  H or credit unemployment insurance coverages which are provided under separate
				  and distinct policy forms, and if the debtor may purchase only a package of
				  these insurance coverages, the premium rate for the package shall be the sum of
				  the separate approved premium rates for the applicable insurance coverages less
				  a discount of 5% of the sum of the separate approved premium
				  rates.
This section cited in 31 Pa. Code §
											73.130 (relating to election of
					 coverage and disclosure
					 requirements).
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.120 - Composite term premium rate

Current through Register Vol. 54, No. 28, July 13, 2024
Composite term premium rates may be used under the following
				  conditions:
(1) The insurer shall
				include in the filing of the composite term premium rates a demonstration that
				the expected total premium to be collected by the insurer will not exceed the
				total premium that would be collected if term specific rates were
				charged.
(2) The composite term
				premium rates may not exceed by more than 10% any term specific rates within
				the composite term period.
This section cited in 31 Pa. Code §
											73.103 (relating to
					 definitions).
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.121 - Maximum rates

Current through Register Vol. 54, No. 28, July 13, 2024
An insurer may use a rate for an account that is lower than
				  the filed rate applicable to that account without notice to the
				  Department.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.122 - Deviated rates

Current through Register Vol. 54, No. 28, July 13, 2024
An insurer may file for approval of and upon approval may use
				  rates that are higher than the prima facie premium rates if the use of the
				  higher rates will result in a loss ratio which is not less than the loss ratio
				  standard in §
									73.123 (relating to loss ratio
				  standards). If rates higher than the prima facie rates are filed, the filing
				  shall specify the account to which the rates apply. These rates may be:
(1) Applied uniformly to all accounts of the
				insurer.
(2) Applied on an
				equitable basis to only one or more accounts of the insurer for which the
				actual prima facie loss ratio was higher than the applicable loss ratio
				standard.
(3) Applied on an
				equitable basis in accordance with an account rating procedure. The account
				rating procedure shall be filed with and approved by the Department prior to
				use.
This section cited in 31 Pa. Code §
											73.106 (relating to life insurance
					 rate standards); 31 Pa. Code §
											73.109 (relating to A and H
					 insurance rate standards); and 31 Pa. Code §
											73.112 (relating to involuntary
					 unemployment insurance rate
					 standards).
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.123 - Loss ratio standards

Current through Register Vol. 54, No. 28, July 13, 2024
Unless revised loss ratio standards are adopted, the loss
				  ratio standards for the coverages specified shall be as follows:
Loss Ratio Standard
Credit Life
55%
Credit Life with TPD
55%
Credit Accident and Health
14-Day Retroactive
65%
14-Day Nonretroactive
65%
30-Day Retroactive
60%
30-Day Nonretroactive
60%
Credit Involuntary Unemployment
30-Day Retroactive
60%
30-Day Nonretroactive
60%
Credit Voluntary Unemployment
60%
This section cited in 31 Pa. Code §
											73.106 (relating to life insurance
					 rate standards); 31 Pa. Code §
											73.109 (relating to A & H
					 insurance rate standards); 31 Pa. Code §
											73.112 (relating to involuntary
					 unemployment insurance rate standards); 31 Pa. Code §
											73.113 (relating to voluntary
					 unemployment insurance rate standards); and 31 Pa. Code §
											73.122 (relating to deviated
					 rates).
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.124 - Duration of deviation

Current through Register Vol. 54, No. 28, July 13, 2024
Deviated rates may not be in effect for a period longer than
				  3 years. An insurer may file for a new rate before the end of the 3 years, but
				  not more often than once during any 12 month period.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.125 - Portability of rates

Current through Register Vol. 54, No. 28, July 13, 2024
If an account for which a higher (deviated) rate is approved
				  changes insurers, the rate approved for use for that account by the prior
				  insurer shall be the maximum rate that may be used by any succeeding insurer
				  for the remainder of the applicable rate period, applicable to the prior
				  insurer, or until a new rate is filed for use in connection with the account,
				  if sooner.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.126 - Voluntary unemployment experience reports

Current through Register Vol. 54, No. 28, July 13, 2024
The Commissioner may require, with a minimum of 6 months
				  advance notice, that each insurer doing credit voluntary unemployment insurance
				  business in this Commonwealth file a report of credit voluntary unemployment
				  insurance written on a calendar year basis. The report shall follow the format
				  specified for credit unemployment insurance of the Credit Insurance Experience
				  Exhibit as required by the annual statement instructions and shall contain
				  separate specific data for this Commonwealth, rather than an allocation of the
				  company's countrywide experience.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.127 - Refunds

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Refund
				provision
. If insurance terminates prior to the scheduled maturity
				date of the indebtedness, a refund of any unearned premium shall be made as
				follows:
(1) If the indebtedness is
				discharged due to prepayment, renewal or refinancing prior to the scheduled
				maturity date, credit insurance shall be terminated and a refund of the
				unearned premium shall be made.
(2)
				A refund of any unearned credit A and H insurance premium, credit involuntary
				unemployment insurance premium or credit voluntary unemployment insurance
				premium shall be made if the indebtedness is prepaid by the proceeds of credit
				life insurance or credit life insurance with TPD benefit. The refund of the
				unearned credit insurance premium shall be in addition to any credit life
				insurance or TPD benefit proceeds.
(3) A refund of the total premium charged for
				credit insurance coverage shall be made if coverage is voided ab initio for any
				reason other than termination of the indebtedness.
(4) If joint coverage on one of the debtors
				is voided ab initio, a refund of the difference between the premium actually
				charged for the joint coverage, and the premium that would have been charged if
				only single coverage had been provided shall be made.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.128 - Terminations

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Individual policy termination
. An individual policy of credit
				insurance may not be terminated by an insurer, except for nonpayment of
				premium, prior to the scheduled expiration date of the policy, unless the
				indebtedness is sooner discharged due to renewal, refinancing or
				prepayment.
(b)
Continuation of coverage
. If a debtor is insured under a
				single premium group credit insurance policy, the insurer shall provide that in
				the event of termination of the policy, insurance coverage with respect to the
				debtor shall continue with either the original insurer or a new insurer for the
				entire period for which the single premium has been paid.
(c)
Notice of termination
.
				If a debtor is insured under a group credit insurance policy providing for the
				payment of premiums to the insurer on a monthly premium basis, the insurer
				shall, in the event of termination of the policy, cause a notice of termination
				to be provided to the insured debtor at least 30 days prior to the effective
				date of termination. A termination notice is not required if replacement
				coverage, of at least equal value, takes effect on the effective date of
				termination. The terminating insurer shall be responsible for assuring that any
				required termination notice is provided.
(d)
Assumption of coverage
.
				If an existing group policy is assumed by another insurer, the assuming insurer
				shall issue to the group policyholder a certificate of assumption for
				attachment to the group policy. If the entity to which the insured debtor is
				indebted is other than the group policyholder, the assuming insurer shall make
				reasonable efforts to notify the entity of the assumption.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.129 - Dividends

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Dividend payment
. Dividends on participating individual
				policies of credit insurance may be payable to the owners of the individual
				policies. Payment of dividends may be deferred until the policy is
				terminated.
(b)
Nonparticipating policies
. Experience refunds or retrospective
				premium rate adjustments may not be applied to nonparticipating individual
				credit insurance policies.
(c)
Dividends or retrospective rate credits as compensation
.
				Dividends or retrospective rate credits on group policies may be paid or
				credited to the group policyholder. Dividends or retrospective rate credits,
				less the policyholder's own contributions, if any, and less any amounts of the
				dividends or retrospective rate credits paid or credited to the benefit of
				debtors insured under the group policy, shall be considered compensation for
				the purpose of §
									73.134 (relating to compensation
				of producers or creditors).
This section cited in 31 Pa. Code §
											73.134 (relating to compensation
					 of producers and creditors).
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.130 - Election of coverage and disclosure requirements

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Separate purchase of
				coverages
. If more than one type of credit insurance coverage is
				offered for purchase in connection with an indebtedness and each coverage is
				provided under separate and distinct policy forms, the debtor shall be allowed
				to separately purchase each credit insurance coverage, unless the premium rate
				for a package policy is provided under §
									73.119 (relating to combination
				coverage rate).
(b)
Election of coverage
. If an identifiable charge is made to the
				debtor for credit insurance coverage, no coverage may be provided unless the
				debtor is liable under the credit agreement and the coverage is elected and
				authorized by the proposed insured debtor in the insurance application. If
				joint life, joint life with TPD benefit, joint A and H, joint involuntary
				unemployment or joint voluntary unemployment coverage is offered, and an
				identifiable charge is made for the joint coverage, each proposed insured
				debtor shall be liable under the credit agreement, and shall elect the coverage
				by authorizing the insurance application. An insurer may require that only one
				of the joint debtors elect the credit insurance coverage if the following
				exist:
(1) The insurance application is mailed
				or electronically transmitted to the debtor and returned to the insurer or
				creditor by mail or electronically.
(2) The credit insurance application is
				completed after the application for the indebtedness is completed.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.131 - Choice of insurer

Current through Register Vol. 54, No. 28, July 13, 2024
If insurance is required as additional security for an
				  indebtedness, the debtor shall be informed by the creditor prior to completion
				  of an application for credit insurance of the right to provide alternative
				  insurance coverage through existing policies or by procuring and purchasing
				  insurance coverage through an authorized insurer.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.132 - Collection of premiums

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Collecting premiums as a representative
. If the creditor or
				its representative collects premiums or an identifiable charge for credit
				insurance from a debtor, it does so as a representative of the insurer and the
				moneys so collected shall be deemed received by the insurer for purposes of
				this chapter.
(b)
Remittance of premiums
. Premiums collected by the creditor
				from the debtor shall be remitted by the creditor to the insurer on a timely
				basis. For premiums collected on a single premium basis, premiums shall be
				remitted not later than 60 days from the last day of the month in which the
				insurance coverage was purchased. For premiums collected on a monthly
				outstanding premium basis, premiums shall be remitted not later than 60 days
				after the last day of the month or billing cycle in which the premiums from the
				debtor were charged or collected.
This section cited in 31 Pa. Code §
											73.137 (relating to compensating
					 balances or special deposits).
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.133 - Claims and examination procedures

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Claim procedures
. Every
				insurer shall be responsible for the settlement, adjustment and payment of all
				claims and shall establish and maintain adequate claim files.
(b)
Claim reporting
.
(1) Claims shall be promptly reported by the
				group policyholder or its representatives to the insurer or its designated
				claim representative, and all claims shall be settled as soon as practical and
				in accordance with the terms of the insurance contract.
(2) In the case where both A and H insurance
				benefit and life insurance with TPD benefit coverages are provided in
				connection with the same indebtedness, the group policyholder shall report the
				claim to the insurer for the appropriate coverage prior to or at the end of any
				applicable elimination period, subject to the group policyholder having
				received appropriate claim information from the insured
				debtor.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.134 - Compensation of producers and creditors

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Compensation limits
.
				Premium rates shall be presumed to be excessive if the compensation for writing
				and handling credit insurance paid to a creditor, producer or any affiliate,
				associate, subsidiary, director, officer, employe or other representative of
				the creditor or producer, exceeds:
(1) For
				credit life insurance and credit life insurance with TPD benefit, 27% of the
				prima facie premium rates referenced in §
										73.106 (relating to life insurance
				rate standards) or 27% of the actuarially consistent premium rates for
				insurance for which prima facie rates are not published in the
Pennsylvania Bulletin
.
(2) For credit A&H insurance or
				involuntary unemployment insurance, 21% of the prima facie premium rates
				referenced in §§
										73.109 and
				73.112 (relating to A and H
				insurance rate standards; and involuntary unemployment insurance rates
				standards) or 21% of the actuarially consistent premium rates for insurance for
				which prima facie rates are not published in the
Pennsylvania
				Bulletin
.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.135 - Licensed producers

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Individual policy
. All individual policies of credit life
				insurance, credit A and H insurance or credit involuntary or voluntary
				unemployment insurance shall be issued only through a producer licensed in this
				Commonwealth. A person performing in connection with an individual policy a
				conduct which would fall within the definition of a producer shall be licensed
				as a producer.
(b)
Employes
				of creditor or insurer
. If a group policy is issued to a creditor,
				bona fide employes of the creditor or insurer may issue certificates and
				perform functions related to the issuance of certificates and administration of
				the group policy without being licensed as producers.
(c)
Receipt of compensation without
				licensing
. If a group policy is issued to a creditor, the creditor
				may, without being licensed as a producer, receive compensation for the
				issuance of certificates and performance of functions related to the issuance
				of certificates, subject to the limitation on compensation as provided in
				§
									73.134 (relating to compensation
				of producers or creditors).
(d)
Licensed agent
. A licensed agent of the insurer who is not
				employed by the group policyholder may assist the group policyholder with the
				enrollment of persons in the program and with the issuance of certificates, but
				may not receive a commission from the group policyholder.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.136 - Filing of forms and rates

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Approval of forms and rates
. Individual policies, group
				policies, group certificates, notices of proposed insurance, applications for
				insurance, endorsements and riders delivered or issued for delivery in this
				Commonwealth and premium rates and formulas used in this Commonwealth shall be
				filed with the Commissioner for approval in accordance with section 7 of the
				act (40 P. S. §
										1007.7).
(b)
Identification of
				filing
. Each filing of an individual or group policy or group
				certificate shall be accompanied by a filing letter describing the specific
				type of credit instruments with which the form will be used. If the coverage is
				equal to the net unpaid indebtedness, the filing letter shall describe the
				method used to determine how the interest is earned. If an approved form is to
				be used with a type of credit instrument other than that stated in the original
				filing letter, or the method for earning interest is other than that as stated
				in the original filing letter, a new filing letter describing the specific type
				of loan and the interest charge calculation shall be filed.
(c)
Readability.
(1) Forms shall be written in understandable
				language, which is not confusing or misleading to a person of average
				intelligence. Forms shall contain a definition or explanation of terminology
				that would not be ordinarily understood by a person of average
				intelligence.
(2) Forms may not
				contain inconsistent or contradictory language or provisions.
(3) Policies and group certificates shall
				accurately and completely explain the coverage and conditions of coverage.
				Group certificates shall be consistent with the group policies and contain
				provisions applicable only to insured debtors.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.137 - Compensating balances or special deposits

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Definition
. Compensating
				balances or special deposit accounts shall include the following:
(1) The deposit of premiums or money to the
				account of the insurer or an affiliate of the insurer when the account is
				either noninterest bearing or bearing interest at a rate less than the current
				market rate. The rate of interest will be considered less than usual if a
				higher rate of interest could be earned by combining the account with one or
				more other accounts, unless there is a business reason unrelated to the credit
				insurance program for maintaining separate accounts.
(2) The remittance of premiums to the insurer
				after the expiration of the grace period, except as provided in §
										73.132(b)
				(relating to collection of premiums), on a regular basis thereby resulting in
				an arrearage period which is constant.
(3) The retention of premiums by a producer
				to whom the financial institution remits premiums beyond a reasonable period of
				time needed for the producer to remit premiums to an insurer, if the delay is a
				continuing practice in the premium paying process.
(4) Any other practice which unduly delays
				receipt of premiums by the insurer on a regular basis, or which involves the
				use of the financial resources of an insurer for the benefit of a financial
				institution.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.138 - Financial statement reserves

Current through Register Vol. 54, No. 28, July 13, 2024
The following reserves for all credit insurance policies
				  shall be maintained by insurers doing credit life insurance or credit A and H
				  insurance business in this Commonwealth:
(1) The reserves for credit life insurance
				may not be less than the reserves as computed using the Commissioners 1980
				Extended Term Mortality Table, using mortality rates applicable to male lives
				for insurance issued prior to January 1, 2007, with interest at the rate
				specified in section 301(c) of The Insurance Department Act of 1921
				(40
				P. S. §
										71(c)).
(2) The reserves for credit life insurance
				may not be less than the reserves as computed using the 2001 CSO Male Composite
				Ultimate Mortality Table for insurance issued on or after January 1, 2007 with
				interest at the rate specified in section 301(c) of The Insurance Department
				Act of 1921.
(3) If the credit life
				insurance policy or certificate insures two lives, the minimum standard must be
				twice the mortality in the 2001 CSO Male Composite Ultimate Mortality Table
				based on the age of the older insured.
(4) Chapter 84c (relating to valuation of
				life insurance policies) does not apply to credit life insurance.
(5) The reserves for single premium credit
				TPD benefits may not be less than the mean of the amounts of unearned premium
				calculated from gross premiums in force on the following bases:
(i) The pro rata basis.
(ii) Rule of 78 basis.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.139 - Credit insurance on open end loans

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General requirements
.
				Credit insurance may be provided in connection with open end loans. This
				insurance is provided on the outstanding balance of the indebtedness, subject
				to any maximum dollar amount of coverage or limited benefit period specified in
				the group certificate or individual policy. If no indebtedness exists, the
				insurance amount shall be zero and shall remain so until an advance or charge
				occurs under the plan. This section supersedes other provisions of this chapter
				to the extent that the provisions would otherwise relate to credit insurance on
				open end loans.
(b)
Identification
. A credit insurance program designed for use
				with open end loans shall be identified as such when filed with the Department
				in accordance with §
									73.136 (relating to filing of
				forms and rates).
(c)
Symbols
. The symbols used in this section shall have the
				following meaning:
(1) i = actual monthly
				interest rate (APR/12).
(2) i' = (i
				+ .0025).
(3) n =
				log(z/(z-i))/log(1+i) rounded up to an integer.
(4) NFC = gross/net conversion rate for an
				open end loan with the monthly benefit equal to a minimum monthly payment that
				is based on a percentage of the current month's balance.
(5) z = minimum monthly payment expressed as
				a decimal fraction.
Pennsylvania Code › Title 31 - INSURANCE › Part III - Credit Insurance › Chapter 73 - CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND HEALTH INSURANCE › Section 73.143 - Credit insurance on balloon loans

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General requirements
.
				Credit insurance may be provided in connection with balloon loans. This section
				supersedes other provisions of this chapter to the extent that the provisions
				would otherwise relate to credit insurance on balloon loans.
(b)
Identification
. Any
				credit insurance program designed for use with balloon loans shall be
				identified as such when filed with the Department in accordance with §
									73.136 (relating to filing for
				forms and rates).
(c)
Disclosure
. Every individual policy or group certificate shall
				contain a disclosure that neither the A and H nor the involuntary unemployment
				insurance benefit is provided on the balloon amount of the loan. The disclosure
				shall appear in prominent type on the first page of the individual policy or
				group certificate.
(d)
Benefit amount
.
(1) For
				credit life insurance or credit life insurance with TPD benefit, the balloon
				amount shall be included in determining the amount of gross unpaid indebtedness
				or net unpaid indebtedness.
(2) For
				credit A and H, involuntary unemployment or voluntary unemployment insurance,
				no monthly benefit may be provided on the balloon amount.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 81 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 81.1 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
The purpose of this chapter is to:
(1) Regulate the activities of insurers,
				agents and brokers with respect to the replacement of existing life insurance
				and annuities.
(2) Protect the
				interest of life insurance and annuity purchasers by establishing minimum
				standards of conduct to be observed in replacement transactions by:
(i) Assuring that purchasers receive
				information with which a decision can be made in the purchasers' best
				interest.
(ii) Reducing the
				opportunity for misrepresentation and incomplete disclosures.
(iii) Establishing penalties for failure to
				comply with this chapter.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 81 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 81.2 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
				  have the following meanings, unless the context clearly indicates
				  otherwise:
Commissioner
-The Insurance Commissioner of
				  the Commonwealth.
Conservation
-An attempt by the existing
				  insurer or its agent or broker to dissuade a policyowner from the replacement
				  of existing life insurance or annuity. The term does not include routine
				  administrative procedures, such as late payment reminders, late payment offers
				  or reinstatement offers.
Department
-The Insurance Department of the
				  Commonwealth.
Direct-response sales
-A sale of life
				  insurance or annuity where the insured does not utilize an agent in the sale or
				  delivery of the policy.
Existing insurer
-The insurance company whose
				  policy is or will be changed or terminated in such a manner as described in the
				  definition of replacement.
Existing life insurance or annuity
-A life
				  insurance or annuity in force, including life insurance under a binding or
				  conditional receipt or a life insurance policy or annuity that is within an
				  unconditional refund period.
Registered contract
-Variable annuities,
				  variable life insurance under which the death benefits and cash values vary in
				  accordance with unit values of investments held in a separate account or
				  another contract issued by life insurance companies which is registered with
				  the Federal Securities and Exchange Commission.
Replacement
-A transaction in which new life
				  insurance or a new annuity is to be purchased, and it is known or should be
				  known to the proposing agent, broker or proposing insurer if there is no agent,
				  that by reason of the transaction, existing life insurance or annuity has been
				  or is to be one of the following:
(i)
				Lapsed, forfeited, surrendered, assigned to replacing insurer or otherwise
				terminated.
(ii) Converted to
				reduced paid-up insurance, continued as extended term insurance or otherwise
				reduced in value by the use of nonforfeiture benefits, dividend cash values or
				other policy cash values.
(iii)
				Amended so as to effect either a reduction in benefits or in the term for which
				coverage would otherwise remain in force or for which benefits would be
				paid.
(iv) Reissued with a
				reduction in cash value.
(v)
				Pledged as collateral or subjected to borrowing, whether in a single loan or
				under a schedule of borrowing over a period of time for amounts in the
				aggregate exceeding 25% of the loan value set forth in the policy.
Replacing insurer
-The insurance company that
				  issues or proposes to issue a new policy or contract which is a replacement of
				  existing life insurance or annuity.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 81 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 81.3 - Exemptions

Current through Register Vol. 54, No. 28, July 13, 2024
Unless otherwise specifically included, this chapter does not
				  apply to transactions involving:
(1)
				Life insurance issued under section 3 of the act of May 11, 1949 (P. L. 1210,
				No. 367) (40 P. S. §
										532.3), known
				as the Group Life Insurance Policy Law or the Model Act for the Regulation of
				Credit Life Insurance and Credit Accident and Health Insurance (40 P. S.
				§§
										1007.1-1007.15).
(2) Group life insurance or group
				annuities.
(3) An application to
				the existing insurer that issued the existing life insurance and a contractual
				change or a conversion privilege is being exercised.
(4) Proposed life insurance that is to
				replace life insurance under a binding or conditional receipt issued by the
				same company.
(5) Transactions
				where the replacing insurer and the existing insurer are the same, or are
				subsidiaries or affiliates under common ownership or control. Agents or brokers
				and insurers engaged in direct response sales proposing replacement shall
				comply with §§
									81.4(a), (b)(3) and
				(c) and
				81.7(b)(2)
				(relating to duties of agents and brokers; and duties of insurers with respect
				to direct response sales).
(6)
				Registered contracts shall be exempt from the requirements of §
									81.6(a)(2)(ii) and
				(b) (relating to duties of insurers that use
				agents or brokers) requiring provision of policy summary or ledger statement
				information. Premium or contract contribution amounts and identification of the
				appropriate prospectus or offering circular are required in lieu
				thereof.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 81 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 81.4 - Duties of agents and brokers

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
				agent or broker who initiates the application shall submit to the insurer to
				which an application for life insurance or annuity is presented, with or as
				part of each application:
(1) A statement
				signed by the applicant as part of each application as to whether replacement
				of existing life insurance or annuity is involved in the transaction.
(2) A signed statement as to whether the
				agent or broker knows replacement is or may be involved in the
				transaction.
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 81 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 81.5 - Duties of insurers

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
				insurer shall inform its field representatives or other personnel responsible
				for compliance with this chapter of the requirements of this chapter.
(b) The insurer shall require as part of a
				completed application for life insurance or annuity a statement signed by the
				applicant as to whether the proposed insurance or annuity will replace existing
				life insurance or annuity.
This section cited in 31 Pa. Code §
											90c.3 (relating to replacement
					 questions for life insurance).
Pennsylvania Code › Title 31 - INSURANCE › Part IV - Life Insurance › Chapter 81 - REPLACEMENT OF LIFE INSURANCE AND ANNUITIES › Section 81.6 - Duties of insurers that use agents or brokers

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An insurer that uses an agent or broker
				in a life insurance or annuity sale shall:
(1) Require with or as part of a completed
				application for life insurance or annuity a statement signed by the agent or
				broker as to whether the broker knows replacement is or may be involved in the
				transaction.
(2) If replacement is
				involved:
(i) Require from the agent or broker
				with the application for life insurance or annuity a list of all the
				applicant's existing life insurance or annuity to be replaced, and a copy of
				the replacement notice provided the applicant under §
											81.4(b)(1)
				(relating to duties of agents and brokers). The existing life insurance or
				annuity shall be identified by name of insurer, insured and contract number. If
				a number has not been assigned by the existing insurer, alternative
				identification, such as an application or receipt number, shall be
				listed.
(ii) Send to each existing
				insurer a written communication advising of the replacement or proposed
				replacement and the identification information obtained under subparagraph (i)
				and in the case of life insurance, the disclosure statement as required by
				§
											83.3 (relating to disclosure
				statement) or a ledger statement containing comparable policy data on the
				proposed life insurance. A surrender comparison index need not be included. In
				the case of an annuity, a ledger statement containing comparable data shall be
				provided. This written communication shall be made within 5 working days of the
				date the application is received in the replacing insurer's home or regional
				office, or the date the proposed policy or contract is issued, whichever is
				sooner.