Statutes, codes, and regulations
California Code Of Regulations
Title 10 - InvestmentChapter 5 - Insurance CommissionerSubchapter 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

Cal. Code Regs. tit. 10 § 2670.20

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Current through Register 2024 Notice Reg. No. 45, November 8, 2024
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
(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.

Cal. Code Regs. Tit. 10, § 2670.20

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.

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 inConsumer Credit Insurance Associationv.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.