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31.13.03.00.htm 31.13.03.01. Title 31 MARYLAND INSURANCE ADMINISTRATION Subtitle 13 CREDIT LIFE, CREDIT HEALTH, AND CREDIT INVOLUNTARY UNEMPLOYMENT BENEFIT INSURANCE Chapter 03 Standards for Credit Involuntary Unemployment Benefit Insurance Authority: Insurance Article, §2-109 and Title 13, Annotated Code of Maryland
31.13.03.01.htm 31.13.03.01. 01 Purpose.. The purpose of this chapter is to promote the public welfare by regulating credit involuntary unemployment benefit insurance and to establish standards for premium rates.
31.13.03.02.htm 31.13.03.02. 02 Regulation of Commissions.. The Commissioner finds it necessary to establish maximum rates of commission that may be paid to insurance producers and maximum benefits payable to creditor group policyholders in the form of dividends, retrospective rate credits, or any other form, to ensure that credit involuntary unemployment benefit insurance operations of insurers do not:A. Result in rates that are excessive in relation to benefits;. B. Endanger the solvency
31.13.03.03.htm 31.13.03.03. 03 Applicability.. This chapter applies to all authorized insurers delivering, issuing for delivery, or proposing to deliver or issue for delivery, credit involuntary unemployment benefit insurance in Maryland under individual policies, group policies, or group certificates that are required to be filed under Insurance Article, §13-110, Annotated Code of Maryland.
31.13.03.04.htm 31.13.03.04. 04 Definitions.. A. In this chapter, the following terms have the meanings indicated.. B. Terms Defined.. 1) "Account" means the coverage for a single plan of benefits for credit involuntary unemployment benefit insurance under one premium payment method offered to a single class of business in Maryland by one creditor, whether written on a group or individual basis, or both.2) "Advance loan payment" means the payment of a scheduled loan installment before the installment's
31.13.03.05.htm 31.13.03.05. 05 Loss Ratio.. A. Benefits for policies issued under these regulations shall be deemed reasonable in relation to premiums if claims incurred under the policies result in, or may reasonably be expected to result in, a loss ratio of not less than 55 percent when premiums do not exceed prima facie premium rates.B. When the prima facie loss ratio exceeds 58 percent, the premiums shall be determined in accordance with the methods of Regulation .12 of this chapter.C. Rate Reduction..
31.13.03.06.htm 31.13.03.06. 06 Statistics and Reporting Forms.. A. General Requirements. To permit the Commissioner to review the basis of prima facie premium rates and the basis of premium rates being charged on the case method, each insurer writing credit involuntary unemployment benefit insurance shall:1) Maintain statistics relating to the insurer's Maryland business; and. 2) File the statistics with the Commissioner in the form required by the Commissioner.. B. Case Filing Requirements..
31.13.03.07.htm 31.13.03.07. 07 Rate Changes and Creditor-Paid Insurance.. A. Premium rates under a group policy of credit involuntary unemployment benefit insurance may not be increased more than once during the first policy year, and a subsequent increased rate may not be charged within 12 months of any prior change in rates.B. Monthly Premium Insurance.. 1) In a policy of monthly premium insurance, a change in rates may not be made effective until 31 days after all existing debtors in the group have be
31.13.03.08.htm 31.13.03.08. 08 Premium Rates by Case Method.. A. Case Comprising Two or More Accounts.. 1) If an insurer has combined two or more accounts to establish a case, it may not add additional accounts or remove accounts from that case except with the permission of the Commissioner and under conditions that the Commissioner may specify.2) When submitting an experience report for a case comprising two or more accounts, the insurer shall include a list of the names of each account included in the case.
31.13.03.09.htm 31.13.03.09. 09 General Premium Rate Standards and Increased Rates.. A. General.. 1) With respect to all premium rates not eligible for filing in accordance with the case method, the Commissioner shall accept as meeting the standards of Insurance Article, §13-110(b)1) Annotated Code of Maryland, those premium rate filings that do not exceed prima facie premium rates stated in Regulation .10 of this chapter for the several categories of insurance described in Regulation .10 of this chapter.
31.13.03.10.htm 31.13.03.10. 10 Prima Facie Premium Rates for Credit Involuntary Unemployment Insurance.. A. Prima Facie Single Premium Rates. The premiums charged for credit involuntary unemployment insurance policies having all policy provisions not less favorable to the insured debtor than those required by Regulation .l1 of this chapter may not exceed, on policies of credit involuntary unemployment insurance for which a single premium is charged in advance for the entire duration of the insurance
31.13.03.11.htm 31.13.03.11. 11 Underwriting Requirements for Insurance Prima Facie Premium Rates.. A. The prima facie premium rates in Regulation .10 of this chapter assume that contracts providing credit involuntary unemployment benefit insurance do not require evidence of individual insurability from any eligible debtor electing to purchase coverage except:1) A requirement that the debtor has been employed full-time for not more than 30 days before the effective date of coverage;2) A requirement that the
31.13.03.12.htm 31.13.03.12. 12 Guidelines for Increased Rates.. A. Applications to the Commissioner for higher than prima facie premium rates shall be accompanied and supported by credible statistics.B. Approval of applications for increased rates shall depend on whether the requested rates are not greater than rates based on the standards in this chapter.C. On policies of credit involuntary unemployment benefit insurance for which the prima facie loss ratio exceeds 58 percent, the rate shall be determi
31.13.03.13.htm 31.13.03.13. 13 Remittance of Premiums to Insurer.. A. Premiums shall be remitted to the insurer within 60 days of their due dates.. B. For purposes of this chapter, the deposit of premiums to any demand deposit account with the creditor or affiliate and the continued retention of the premiums in the deposit account for more than 60 days may not be deemed remittance to the insurer.
31.13.03.14.htm 31.13.03.14. 14 Refunds.. A. In event of termination of the insurance before the scheduled maturity date of the indebtedness, the insurer promptly shall refund or credit to the person entitled to it the appropriate portion of any premiums paid for the insurance.B. In the case of monthly premium credit involuntary unemployment benefit insurance, the amount of the refund or credit may not be less than the pro rata gross unearned premium.C. Single Premium Credit Insurance..
31.13.03.15.htm 31.13.03.15. 15 Commission to Insurance Producers and Creditors.. A. On all loans originating in Maryland, an insurer may not directly or indirectly pay, allow, or offer to pay any form of commission, as defined in Regulation .04B(7) of this chapter, in excess of the limits stated in this chapter on a form of credit involuntary unemployment benefit insurance, regardless of whether the payment is made to a licensed insurance producer, a creditor, or an affiliate, corporate parent, subsid
31.13.03.16.htm 31.13.03.16. 16 Reinsurance Treaties.. A. To permit the Commissioner to enforce the provisions of Regulation .15 of this chapter with respect to that portion of commission defined by Regulation .04B(7)a)xiv) of this chapter and to permit the Commissioner to ascertain that there are no violations of Insurance Article, Title 27, Annotated Code of Maryland, and other applicable sections of Insurance Article, Annotated Code of Maryland, a contract of reinsurance of credit involuntary unem
31.13.03.17.htm 31.13.03.17. 17 Prohibited Transactions.. A. A person may not solicit, sell, or negotiate a group or individual policy of credit involuntary unemployment benefit insurance unless the person is licensed as an insurance producer in accordance with Insurance Article, Title 10, Subtitle 1, Annotated Code of Maryland.B. Enroller.. 1) An enroller may not receive any form of commission, compensation, remuneration, or other benefit based on the enroller's activity in enrolling pers
31.13.03.18.htm 31.13.03.18. 18 Combinations of Coverages.. If an individual policy form or group policy form of credit involuntary unemployment benefit insurance or a certificate form of group credit involuntary unemployment benefit insurance is used to provide both single and joint coverage, the coverage in effect shall clearly and prominently be indicated in the schedule of benefits.
31.13.03.19.htm 31.13.03.19. 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 amoun
31.13.03.20.htm 31.13.03.20. 20 Benefits.. A. If a debtor has filed in accordance with the policy provisions a claim for benefits for which the insurer is liable under a credit involuntary unemployment benefit insurance policy, the insurer shall pay any late charges accruing on the amount payable under the claim after the date the claim has been filed.B. For monthly premium credit involuntary unemployment benefit insurance:. 1) The amount of the monthly benefit payable on a revolving, open end, acco
31.13.03.21.htm 31.13.03.21. 21 Review of Credit Operations.. A. Review Required.. 1) Every insurer transacting credit involuntary unemployment benefit insurance business in Maryland shall conduct a review of each of its creditor accounts with respect to the credit involuntary unemployment benefit insurance business of the creditor to ensure compliance with the insurance laws and regulations of Maryland.2) Unless a satisfactory review has been made within 2 years before the effective date of this chapt
31.13.03.22.htm 31.13.03.22. 22 Effective Date.. A. An individual policy, group policy, or group certificate of credit involuntary unemployment benefit insurance not in conformity with this chapter may not be issued or continued to be used in connection with any loan made on or after the effective date of this chapter.B. A premium in excess of that permitted by these regulations may not be charged for credit involuntary unemployment benefit insurance, and a commission or other form of benef
31.13.03.23.htm 31.13.03.23. 23 Clerical Errors.. A. Excess Insurance.. 1) If a policy of credit involuntary unemployment benefit insurance limits the involuntary unemployment benefits to stated policy maximums, the policy and certificates of insurance issued under a group policy shall provide that if the insured has been charged premiums for insurance in excess of the stated maximums, the insurer may terminate the excess insurance and refund all premiums paid by the debtor for the excess insurance.
31.13.03.24.htm 31.13.03.24. 24 Change of Insurers Reporting Requirements Coverage and Rates.. A. Insurers That Cease to Offer Credit Involuntary Unemployment Benefit Insurance. Within 90 days after an insurer ceases to offer credit involuntary unemployment benefit insurance through a case, the insurer shall notify the Commissioner of:1) The name or code number of the creditor;. 2) Each coverage no longer offered;. 3) The date on which the coverage ceased to be offered; and.
31.13.03.9999.htm 31.13.03.9999. Administrative History Effective date: January 1, 2003 (29:12 Md. R. 934). Regulation .04B amended effective November 7, 2016 (43:22 Md. R. 1223). Regulation .16A amended effective November 7, 2016 (43:22 Md. R. 1223).
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