3 Colo. Code Regs. § 702-4-9-2-6
Current through Register Vol. 47, No. 16, August 25, 2024
Section 3 CCR 702-4-9-2-6 - Benefit Standards/Policy RequirementsA. Minimum Insurance Amounts 1. For other than monthly outstanding balance coverage, the amount of credit insurance at any point in the insurance policy can never bear a lesser percentage to the scheduled outstanding balance than the percentage that the original amount of coverage bears to the initial loan balance.2. Truncated Coverage a. A group certificate or individual policy providing coverage for less than the term of the loan elected (truncated coverage) shall disclose both the term of the insurance policy and that the insurance will terminate prior to the scheduled maturity date of indebtedness. The termination disclosure shall appear in prominent type on the first page of the group certificate or individual policy. At the time of election of truncated coverage, the debtor shall be provided with written notification that the term of the insurance coverage is less than the scheduled maturity of the loan.b. The notification regarding truncated coverage shall be included in the application, enrollment form, notice of proposed insurance, certificate, policy, or any other document provided to the debtor at the time coverage is elected.B. Coverage Increases With respect to coverages, such as monthly outstanding balance coverage, that permit increases in the amount of coverage after the initial effective date of the individual policy or group certificate, the suicide exclusion and the preexisting condition exclusion, if any, may be applied separately with respect to each increase in the amount of coverage from the date of and in the amount of the increase. Under no circumstances, however, shall a new preexisting condition limitation or new suicide exclusion be applied to coverage in force immediately prior to such increase in coverage.
C. Cancellation Notice All individual policies and group insurance certificates shall state that the insurance is cancelable at any time during the term of the contract at the debtor's advance written request to the insurer.
D. Actively-At-Work Requirement Unless specifically included in the rate development, no actively-at-work requirement more restrictive than one requiring that the debtor be actively at work at a full-time gainful occupation on the effective date of coverage shall be included in any credit accident and health insurance policy or contract. "Full-time" means a regular work week of not less than thirty (30) hours, for a period of not less than one month. A debtor shall be considered to be actively at work if absent from work due solely to regular days off, holidays or paid vacation.
E. Allowable Restrictions All exclusions and restrictions included in any credit insurance policy or contract shall be considered in determining whether or not the rate will fulfill the loss ratio requirement when rates are determined according to Section 12.B. or D. of this regulation. In addition, all exclusions and restrictions shall be adequately disclosed to the insured.
F. Credit Life Insurance Except as permitted in Section 6.B., a credit life insurance contract shall contain no exclusion other than for suicide within one year of the effective date of the insurance in compliance with § 10-7-109, C.R.S., and the incontestability clause as defined in § 10-7-102(1)(b), C.R.S., unless such additional exclusions are specifically included in the rate development. Under no circumstances, however, shall the contract exclude loss due to commercial aviation or foreign travel.
G. Credit Accident and Health Insurance 1. Unless specifically included in the rate development, no credit accident and health policy shall contain a provision excluding or denying a claim for disability resulting from preexisting conditions except for those conditions for which the insured debtor received medical advice, diagnosis or treatment within six (6) months preceding the effective date of the debtor's coverage, and which caused loss within the six (6) months following the effective date of coverage.2. Except as provided in Section 6.G.1. credit accident and health policies shall contain no exclusions more restrictive than normal pregnancy, elective surgery, intentionally and self-inflicted injury, flight in non-commercial aircraft, or war.3. Any credit insurance policy that identifies itself as providing coverage in the case of disability shall define disability no more restrictively than the definition included in Section 3.D. of this regulation, unless specifically included in the rate development.4. The policy shall provide for a daily benefit equal in amount to no less than one-thirtieth (1/30) of the monthly benefit payable under the policy or certificate.
H. Credit Unemployment Insurance Credit unemployment insurance coverage shall clearly define unemployment within the policy and certificate and shall contain provisions not less favorable to insured debtors than the following:
1. Coverage for unemployment for any reason, except that coverage may be excluded for unemployment due to the insured debtor's:a. Voluntary forfeiture of salary, wage or other employment income;g. Separation from the military;h. Willful misconduct or criminal misconduct or unlawful behavior; andi. Disability caused by injury, sickness or pregnancy.2. For credit unemployment insurance which provides for a monthly benefit in the event of unemployment, benefits shall start after a waiting period of not longer than thirty (30) days, but need not be retroactive to the first day of unemployment and shall have a maximum benefit period that is no shorter than one month. Coverage may include unemployment under the Federal Family Medical Leave Act, 29 USC 2602 et. seq.3. Credit unemployment insurance coverage shall not contain eligibility requirements more than the following: a. Exclusion from qualification for coverage: (1) Self-employed individuals;(2) Workers in seasonal or temporary jobs designed to last six (6) months or less; and(3) Debtors who have been notified at the time of election of coverage either orally or in writing of any layoff from employment within the next sixty (60) days. These exclusions shall be disclosed to all prospective insureds, if applicable.
b. No employment requirement shall be more restrictive than one requiring that the debtor actually be at work and employed in a full-time gainful occupation on the effective date of coverage and for at least six (6) consecutive months prior to the effective date of coverage.I. Credit Property Insurance 1. Where premiums are collected on a single premium basis, the premium charge for credit property insurance shall be calculated based on the total replacement value or original amount of indebtedness, whichever is less, of each item of insured property. Premium calculations shall be based on purchases of durable goods only and shall not include the cost of any service, meals, entertainment, or any other non-durable item.2. Coverage shall be no less than that provided by the standard fire policy with coverage attachment, extended coverage endorsement and replacement cost provision endorsement, or such other appropriate standard policy form for the underlying risk and hazard.3. If the debtor has or obtains additional personal property coverage, the debtor may retain the additional coverage or may substitute coverage at any time and, upon such substitution, shall be entitled to a refund of the unearned premium on the policy. Where this insurance was not initially required by the creditor, the debtor may cancel at any time and shall be entitled to a refund of any premium paid. If such substitution or cancellation occurs within thirty (30) days of the extension of credit, the entire premium shall be refunded, provided that a compensable claim does not occur prior to the date substitution or cancellation occurs.4. Valuation of losses shall be the replacement cost of the property up to the original amount of indebtedness.5. "Property" shall be defined no more restrictively than the definition of Section 3.H. of this regulation.6. Coverage may be issued only as long as compliance with § 5-4-301(3), C.R.S., is maintained.J. Credit Dismemberment Insurance Any credit insurance coverage, which identifies itself as providing coverage against dismemberment, shall define dismemberment no more restrictively than the definition included in Section 3.E. of this regulation.
37 CR 11, June 10, 2014, effective 7/1/201437 CR 12, June 25, 2014, effective 7/15/2014Colorado Register, Vol 37, No. 14. July 25, 2014, effective 8/15/201437 CR 23, December 10, 2014, effective 1/1/201538 CR 03, February 10, 2015, effective 3/15/201538 CR 06, March 25, 2015, effective 4/30/201538 CR 09, May 10, 2015, effective 6/1/201538 CR 13, July 10, 2015, effective 7/30/201538 CR 19, October 10, 2015, effective 11/1/201538 CR 21, November 10, 2015, effective 1/1/201638 CR 23, December 10, 2015, effective 1/1/201639 CR 01, January 10, 2016, effective 2/1/201639 CR 05, March 10, 2016, effective 4/1/201639 CR 08, April 25, 2016, effective 5/15/201639 CR 19, October 10, 2016, effective 11/1/201639 CR 20, October 25, 2016, effective 1/1/201739 CR 22, November 25, 2016, effective 1/1/201739 CR 23, December 10, 2016, effective 1/1/201739 CR 23, December 25, 2016, effective 1/1/201740 CR 03, February 10, 2017, effective 3/15/201740 CR 09, May 10, 2017, effective 6/1/201740 CR 15, August 10, 2017, effective 9/1/201740 CR 17, September 10, 2017, effective 10/1/201740 CR 21, November 10, 2017, effective 12/1/201741 CR 04, February 25, 2018, effective 4/1/201841 CR 05, March 10, 2018, effective 6/1/201841 CR 08, April 25, 2018, effective 6/1/201841 CR 09, May 10, 2018, effective 6/1/201841 CR 11, June 10, 2018, effective 7/1/201841 CR 15, August 10, 2018, effective 9/1/201841 CR 17, September 10, 2018, effective 10/1/201841 CR 18, September 25, 2018, effective 10/15/201841 CR 21, November 10, 2018, effective 12/1/201841 CR 23, December 10, 2018, effective 1/1/201942 CR 01, January 10, 2019, effective 2/1/201941 CR 19, October 10, 2018, effective 3/1/201942 CR 03, February 10, 2019, effective 4/1/201942 CR 04, February 25, 2019, effective 4/1/201942 CR 06, March 25, 2019, effective 6/1/201942 CR 08, April 10, 2019, effective 6/1/201942 CR 15, August 10, 2019, effective 9/1/201942 CR 17, September 10, 2019, effective 10/1/201943 CR 02, January 25, 2020, effective 12/20/201943 CR 02, January 25, 2020, effective 12/23/201942 CR 23, December 10, 2019, effective 1/1/202043 CR 01, January 10, 2020, effective 2/1/202042 CR 24, December 25, 2019, effective 2/2/202043 CR 06, March 25, 2020, effective 4/15/202043 CR 10, May 25, 2020, effective 8/1/202043 CR 14, July 25, 2020, effective 8/15/202043 CR 17, September 10, 2020, effective 10/1/202043 CR 18, September 25, 2020, effective 11/1/202043 CR 22, November 25, 2020, effective 12/15/202043 CR 24, December 25, 2020, effective 1/15/202144 CR 03, February 10, 2021, effective 3/15/202144 CR 08, April 25, 2021, effective 5/15/202144 CR 09, May 10, 2021, effective 6/1/202144 CR 10, May 25, 2021, effective 6/14/202144 CR 10, May 25, 2021, effective 6/15/202144 CR 13, July 10, 2021, effective 8/1/202144 CR 15, August 10, 2021, effective 9/1/202144 CR 19, October 10, 2021, effective 11/1/202144 CR 21, November 10, 2021, effective 12/1/202144 CR 23, December 10, 2021, effective 12/30/202144 CR 21, November 10, 2021, effective 1/1/202244 CR 23, December 10, 2021, effective 1/15/202244 CR 24, December 25, 2021, effective 1/15/202245 CR 03, February 10, 2022, effective 3/2/202245 CR 08, April 25, 2022, effective 5/30/202245 CR 09, May 10, 2022, effective 5/30/202245 CR 10, May 25, 2022, effective 6/14/202245 CR 11, June 10, 2022, effective 6/30/202245 CR 11, June 10, 2022, effective 7/15/202245 CR 19, October 10, 2022, effective 11/1/202245 CR 20, October 25, 2022, effective 11/14/202245 CR 21, November 10, 2022, effective 11/30/202245 CR 24, December 25, 2022, effective 1/14/202346 CR 01, January 10, 2023, effective 2/14/202346 CR 06, March 25, 2023, effective 2/15/202346 CR 03, February 10, 2022, effective 3/2/202346 CR 04, February 25, 2023, effective 3/17/202346 CR 05, March 10, 2023, effective 4/15/202346 CR 09, May 10, 2023, effective 5/30/202346 CR 09, May 10, 2023, effective 6/1/202346 CR 10, May 25, 2023, effective 6/15/202346 CR 11, June 10, 2023, effective 6/30/2023