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, account shall be the greater of the minimum payment required by the creditor or 3 percent of the debt at the time of involuntary unemployment, subject to any policy maximum; and

(2) If involuntary unemployment occurs prior to the date of termination of the policy or prior to the date of termination of coverage of an insured debtor and if benefits would otherwise have been payable, benefits shall be paid as if coverage continued.

C. For single premium and nonrevolving, closed end, monthly outstanding balance credit involuntary unemployment benefit insurance, the amount of the monthly benefit payable shall be the scheduled payment required by the creditor, subject to any policy maximum.

D. For purposes of this chapter, a claim shall be deemed filed if it is transmitted to the creditor, the insurer, or an insurance producer of the insurer.

E. Amount Due in Excess of Amount Due to Creditor.

(1) An amount due under a credit involuntary unemployment benefit insurance policy in excess of the payment due at the time of involuntary unemployment shall be paid by the insurer directly to the debtor, the designated second beneficiary, or the estate of the debtor, whichever is entitled to the payment.

(2) If the insurer does not have the address of the person entitled to the excess amount, the insurer shall send a check payable to that person to the creditor for transmittal.

F. Claims shall be paid either by a check of the insurer, by a draft drawn upon the insurer, or by electronic transmission.

G. The creditor may not be authorized to settle or adjust claims or to act as a claim representative for the insurer.

H. Benefits for a covered period of unemployment less than a full month shall be paid at a rate of 1/30 of a full monthly benefit for each day of unemployment.

I. The benefit payable under a joint credit involuntary unemployment benefit insurance policy if only one debtor is receiving benefits may not be less than the benefit that would have been paid if both were eligible for benefits.

J. If a policy requires registration with the Office of Unemployment Insurance or a recognized employment agency within a stated time period in order to be eligible for benefits:

(1) The time period may not be less than 15 days; and

(2) If the debtor registers after the stated time period has expired, benefits otherwise payable may not be denied for periods of unemployment after the registration.