Md. Code Regs. 31.13.03.19

Current through Register Vol. 51, No. 22, November 1, 2024

Section 31.13.03.19 - Notice to Debtors

A. Notice of Termination.

(1) If a debtor is covered by a group credit involuntary unemployment benefit insurance policy providing for payment of premiums to the insurer on a monthly premium basis, the policy shall provide that in the event of termination of the policy for any reason:

(a) The insured debtor shall be given written notice of termination; and

(b) Except if replacement of the coverage by the same or another insurer in the same or greater amount takes place without interruption of coverage and a new certificate reflecting the replacement coverage is delivered to the insured debtor, coverage will continue for at least 31 days from the date of notice.

(2) The notice of termination required by this section shall be given by the insurer unless the insurer is unable to identify the debtors, in which case it shall be given by the creditor.

(3) There shall be a prominent notice printed or stamped close to the schedule of benefits in the certificate form that the insurance coverage will terminate if the group policy terminates.

(4) An insurer also may include notice of additional events that would lead to termination of insurance coverage if the events are approved by the Commissioner.

B. Notice that Benefit May Not Cover Installments.

(1) If a credit involuntary unemployment benefit insurance policy is issued under which the monthly benefit might not cover payment of the entire scheduled monthly loan installment or the total benefit might not cover payment of all of the unpaid scheduled installments under the loan even if the loan account and the insurance premiums are paid on a current basis, then there shall be a notice to this effect in the individual policy or in certificates of insurance issued under a group policy.

(2) The notice under §B(1) of this regulation shall be prominently printed or stamped close to the schedule of benefits in the policy and in the certificate form.

C. Other Notices. A policy or certificate of credit involuntary benefit insurance shall include a notice printed in or close to the schedule of benefits that clearly calls attention to any of the following limitations or requirements that are applicable to the policy or certificate:

(1) Any evidence of insurability required for advances of credit;

(2) Any limit on the number of monthly benefit payments that the insurance will provide per occurrence of involuntary unemployment;

(3) Any limit on the number of monthly benefit payments that the insurance will provide over the term of the insurance;

(4) The right of the insured to cancel credit involuntary unemployment benefit coverage that has been issued without canceling any other coverage that has been issued covering the same debt;

(5) Any limit on the term of coverage;

(6) Any limit on the amount of any monthly benefit payment that the insurance will provide over the term of the insurance;

(7) Any limit on the aggregate of any monthly benefit payments that the insurance will provide over the term of the insurance; and

(8) Any requirement that the insured register with the Office of Unemployment Insurance or a recognized employment agency to be eligible for benefits.

Md. Code Regs. 31.13.03.19