Section 310.75 - Credit life, credit accident and health and credit unemployment insurance(a) Sales restrictions.-- A person that sells, solicits or negotiates a contract of credit insurance shall do so in accordance with the act of September 2, 1961 (P.L. 1232, No. 540), known as the Model Act for the Regulation of Credit Life Insurance and Credit Accident and Health Insurance, for all of the following: (1) Credit life insurance.(2) Credit accident and health insurance.(3) Credit unemployment insurance. If the insurance is sold in connection with loans or other credit transactions, the provisions of the Model Act for the Regulation of Credit Life Insurance and Credit Accident and Health Insurance relating to credit life and credit accident and health insurance are applicable to credit unemployment insurance.
(b) Additional restrictions.--In addition to the requirements of subsection (a), the sale, solicitation or negotiation of credit unemployment insurance shall be subject to all of the following:(1) The total amount of benefits payable by credit unemployment insurance in the event of unemployment shall not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness.(2) The amount of each monthly payment shall not exceed the original indebtedness divided by the number of installments.(3) The loss ratio for the insurance shall be set and regulated by the commissioner in the same manner as the loss ratio is set and regulated for credit life and credit accident and health insurance.(4) Involuntary unemployment insurance sold in connection with open-end credit shall provide monthly benefits at least equal to the insured's minimum monthly payment calculated at the time of unemployment, subject to a maximum monthly indemnity contained in the certificate of insurance.(5) Benefits are payable, at a minimum, upon the debtor meeting the eligibility requirements for unemployment compensation.(6) The period during which benefits are payable in the event of the insured's involuntary unemployment shall continue at least until the earliest of the following: (i) The insured's return to full-time work.(ii) Satisfaction of the loan or other credit transaction.(iii) In the case of open-end credit, payment of 12 consecutive monthly installments.(7) The insurance shall not be required as a condition of the extension of credit.(8) If a creditor offers the insurance to any of its debtors, it must offer it under the same terms and conditions to all of its like debtors and under the same terms and conditions as all of its offices or locations in this Commonwealth.1921, May 17, P.L. 789, art. VI-A, § 675-A, added 2002, Dec. 6, P.L. 1183, No. 147, § 2, effective in 180 days.