N.Y. Comp. Codes R. & Regs. tit. 21 § 5004.6

Current through Register Vol. 46, No. 51, December 18, 2024

Section 5004.6 - Insurance on loans

(a) Each loan not in default shall be insured against the death of the member in an amount equal to the amount of the loan outstanding at any given time except there will be no insurance for the first 30 days.

(b) The loan insurance coverage for an additional loan obtained while there is an outstanding balance on a loan shall be administered as follows:

(1) the balance of the old loan shall be considered to be fully insured at the new loan issuance date;

(2) in cases of death where payments have been made on the new loan within 30 days after the loan issuance date, the payments shall be prorated between the old balance and the amount of the new loan.

(c) Insurance shall be provided through the Retirement System Insurance Fund.

(d) Upon the death of a member, the amount of insurance payable shall be credited to his loan account.

(e) The loan insurance premium shall be at a rate of.10 per centum per annum of the outstanding loan balance.

(f) The Retirement Board on any July 1st may increase or reduce the premium, modify the terms or conditions of coverage, or discontinue the insurance of loans.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 5004.6