Current through Register Vol. 54, No. 49, December 7, 2024
Section 73.110 - Involuntary unemployment insurance benefits(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.(b)Alternate benefit plans. Insurers may offer credit involuntary unemployment insurance benefit plans that differ from the plan described in subsection (a). Any alternate plan shall be described in a group policy and group certificate, or in an individual policy, and shall conform to the standards of section 7(b) of the act (40 P. S. § 1007.7(b)). The premium rate standards of § 73.112 apply to alternate benefit plans. This section cited in 31 Pa. Code § 73.112 (relating to involuntary unemployment insurance rate standards); 31 Pa. Code § 73.114 (relating to insurability requirements); 31 Pa. Code § 73.115 (relating to benefit exclusions); 31 Pa. Code § 73.116 (relating to age requirements); and 31 Pa. Code § 73.118 (relating to initial eligibility requirements).