Effective 1/01/08

Credit Accident/Health Insurance

Credit Accident/Health Policies

Word Document - Alteration of this document will result in rejection of the filing

Each filing must include a completed Review Requirements Checklist that must contain a completed “Location of Standard in Filing” column for each required element of the filing. Please indicate the proper page # and form # for each entry.

50 IL Adm. Code 1405.20 (e)
50 IL Adm. Code 2001.30 (a) (3)

In addition to referencing any previously approved form number(s) as required by 50 IL Adm. Code 1405.20(e), those references must also include the filing number and SERFF tracking number (if applicable and available) for the referenced forms.

All accident and health insurance sold in connection with loans or otherwise made effective in connection with loans or other credit transactions of less than 10 years duration are subject to Article IX ½ of the Illinois Insurance Code.

Credit accident and health insurance means insurance on a debtor to provide indemnity for payments becoming due on a loan or other credit transaction while the debtor is disabled as defined in the policy.

Each policy or certificate must include:

1.) the name and home office address of the insurer;

2.) the name or identify of the insured debtor;

3.) the rate or amount of payment;

4.) a description of the amount and the term of coverage;

5.) a description of any exceptions, limitations or restrictions;

6.) a statement that the benefits shall be paid to the creditor to reduce or extinguish the unpaid indebtedness; and,

7.) that any excess shall be payable to the beneficiary, other than the creditor, named by the debtor or to his/her estate.

The individual policy or group certificate must be delivered to the debtor at the time the indebtedness is incurred.

In lieu thereof, the insured debtor must receive a copy of the signed application or a notice of the proposed insurance. The insured debtor must then receive the policy or certificate within 30 days of the date the indebtedness is incurred.

If the coverage is contingent upon the insured working a minimum number of hours per week there must be a question on the application asking whether the insured works the minimum number of hours.

If the coverage is guaranteed issue, then the policy or certificate must include a clear statement regarding the minimum number of hours that must be worked per week.