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 debtor has not received notice of impending termination or layoff within 60 days before the effective date of coverage; and

(3) That there are no age restrictions, except that coverage may be restricted based on age if:

(a) There is credit health insurance coverage or credit life insurance coverage on the same debt;

(b) The credit health insurance coverage or credit life insurance coverage is subject to an age restriction; and

(c) The credit involuntary unemployment benefit insurance is:

(i) Subject to the same age restriction that applies to the credit health insurance coverage; or

(ii) If no age restriction applies to the credit health insurance, subject to the same age restriction that applies to the credit life insurance.

B. Regardless of individual policy or certificate amounts, for underwriting purposes it is assumed that the policy contains no exclusions except the following:

(1) Voluntary forfeiture of salary, wages, or employment income;

(2) Resignation;

(3) Retirement;

(4) Loss of employment as a result of willful or criminal misconduct;

(5) Loss of employment as a result of seasonal employment;

(6) Loss of employment as a result of disability;

(7) Discharge from military; or

(8) Loss of self-employment without a declaration of bankruptcy, either of the debtor or of the debtor's business.

C. Acquisition of Existing Account.

(1) If an insurer acquires an existing account providing involuntary unemployment benefits on a monthly premium basis or on another basis for which the debtor is charged monthly, the new insurer shall honor all claims for periods of involuntary unemployment commencing on or after the date of takeover and all claims after that which would have been paid under the former policy.

(2) The original insurer shall honor all claims for periods of involuntary unemployment commencing before the date of takeover.