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.

(2) The notice of termination of the excess insurance shall state that the premium paid by the debtor for the excess coverage shall be refunded to the person entitled to it.

(3) A single premium credit involuntary unemployment benefit insurance policy and certificate shall further provide that excess insurance shall remain in force if the insurer does not terminate the excess insurance within 60 days after the effective date of coverage or if the debtor suffers a covered loss within the 60-day period but before notification by the insurer of termination of the excess coverage.

(4) A monthly premium credit involuntary unemployment benefit insurance policy and certificate shall further provide that the excess insurance shall be in force for the period for which a premium was charged unless the excess insurance is cancelled before the occurrence of a loss.

B. Ineligible Debtor.

(1) Misstatement of Age.

(a) If a policy of credit involuntary unemployment benefit insurance or certificate of credit involuntary unemployment benefit insurance issued under a group policy contains an age restriction, the policy or certificate may allow the insurer to terminate the coverage and refund all premiums paid by the debtor if:

(i) The debtor has misstated the debtor's age; and

(ii) The debtor's true age is greater than the limiting age stated in the policy.

(b) If a policy of credit involuntary unemployment benefit insurance or certificate of credit involuntary unemployment benefit insurance issued under a group policy contains an age restriction, the policy or certificate may not provide for an adjustment of premiums or benefits if:

(i) The debtor misstates the debtor's age; and

(ii) The debtor's true age is not greater than the limiting age stated in the policy or certificate.

(2) If a debtor's eligibility for credit involuntary unemployment benefit insurance is subject to restrictions based on employment or other factors, the policy and certificates of insurance issued under a group policy shall provide that if insurance is issued to an ineligible debtor who has truthfully answered all eligibility questions, the insurer may terminate the insurance and refund all premiums paid by the debtor.

(3) The notice of termination of the insurance shall state that the premium paid by the debtor shall be refunded to the person entitled to it.

(4) A single premium credit involuntary unemployment benefit insurance policy and certificate shall also provide that the insurance shall remain in force if the insurer does not terminate the coverage within 60 days after the effective date of coverage or if the debtor suffers a covered loss within the 60-day period but before notification by the insurer of termination of the insurance.

(5) A monthly premium credit involuntary unemployment benefit policy and certificate shall provide that the insurance shall be in force for the period for which a premium was charged unless the insurance is cancelled with not less than 31 days notice before the occurrence of a loss.