| Contact Person: | Illinois Department of Insurance | 320 West Washington Street | ||
| Cindy Colonius | Review Requirements Checklist | Springfield, IL 62767-0001 | ||
| 217-782-4572 | ||||
| Cindy.Colonius@Illinois.gov |
Effective 1/01/08 |
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| Line(s) of | Line(s) of | |||
| Business | Insurance | |||
Credit Life Insurance |
Credit Life Policies |
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| Click here for interactive version of this document to be down loaded and submitted with this filing | Word Document - Alteration of this document will result in rejection of the filing |
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| Illinois Insurance Code Link | Illinois Compiled Statutes Online | |||
| Illinois Administrative Code Link | Administrative Regulations Online | |||
| Product Coding Matrix | Product Coding Matrix | |||
| REVIEW REQUIREMENTS | REFERENCE |
DESCRIPTION OF REVIEWSTANDARDS REQUIREMENTS |
LOCATION OF STANDARD IN FILING |
| NOTE: These brief summaries do not include all requirements of all laws, regulations, bulletins, or requirements, so review actual law, regulation, bulletin, or requirement for details to ensure that forms are fully compliant before filing with the Department of Insurance. | |||
| FORM FILING REQUIREMENTS | REFERENCE | DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS | LOCATION OF STANDARD IN FILING |
| Uniform Transmittal Document (Etrans) | 50 IL Adm. Code 916 | Form filings must now be submitted either by SERFF or CD-ROM. Please visit
the Department's web site for the Universal Transmittal Document (Etrans)
by clicking this link. Scroll down to "Universal Transmittal Document Software (Etrans)" |
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| Review Requirements Checklist | Go to Review Requirements Checklists on DOI web site. See next column | 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. |
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| Cover Letter and Letter of Submission | 50 IL Adm. Code 1405.20 (e) |
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. Letters of submission must generally describe the intent and use of the form being filed and, if applicable, how it will be used with any previously approved form(s). |
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| Rates | 215 ILCS 5/155.58(a) 50 IL Adm. Code 916.40 f) 50 IL Adm. Code 951.50 a) |
Rates must be submitted with a uniform transmittal document and contain a unique filing number. | |
| GENERAL REQUIREMENTS FOR ALL FILINGS | REFERENCE | DESCRIPTION OF REVIEW STANDARDS REQUIREMENTS | |
| Credit Life Required Provisions | 215 ILCS 5/155.51(b) | All life 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. | |
| Policy or Certificate Required | 215 ILCS 5/155.56(a) | All credit life insurance must be provided in the form of an individual policy or certificate delivered to the debtor. | |
| Contents of Policy or Certificate | 215 ILCS 5/155.56(b) |
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 |
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| Delivery of Policy or Certificate | 215 ILCS 5/155.56(c)(d) |
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. |
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| Termination of Insurance Prior to Scheduled Maturity Date | 215 ILCS 5/155.58(b) | The individual policy or group certificate must include a provision that in the event of termination prior to the scheduled maturity date of the indebtedness, any refund of an amount paid by the debtor for coverage shall be paid or credited promptly to the person entitled. | |
| Payments Made Prior to Issuance of Policy or Certificate | 215 ILCS 5/155.58(c) | If an insured debtor is required to make a payment prior to the time the policy or certificate is issued the creditor must provide a written notice of such and make the appropriate credit to the account. | |
| Existing Insurance | 215 ILCS 5/155.61 | If life insurance is required as additional security for any indebtedness, the debtor may request of the creditor to be able to use existing policies owned or controlled by him/her, or of procuring the required coverage through any authorized insurer. | |
| ADMINISTRATIVE CODE PROVISIONS | |||
| Exclusion for Suicide | 50 IL. Adm. Code 951.50 b) 1) | Suicide may be excluded for up to one year. Under open-end credit life plans the effective date may apply separately for each additional purchase or loan to which the coverage relates. | |
| Age Restriction | 50 IL. Adm. Code 951.50 b) 2) | There may be no age restrictions, or an age restriction only upon initial eligibility for debtors over age 65 at the time the indebtedness is incurred, or for debtors having attained age 66 or over on the maturity date of the indebtedness. However, coverage must remain in force for an insured debtor who has correctly stated his age on an application and the insurer does not refund premium within sixty days of receipt. | |
| Permissible Age Restriction for open-end credit plans | 50 IL Adm. Code 951.50 b) 3) | Credit life insurance underwritten in connection with an open-end plan may exclude eligible classes based on age, and may provide for the cessation or reduction of coverage upon the attainment of not less than age 65. | |
| Pre-ex on Credit Life | 50 IL Adm. Code 951.50 b) 4) |
For open-end credit life plans where the amount of coverage is based on or limited to the outstanding unpaid balance, there may be no pre-existing condition limitation on a death claim except for a condition for which the insured debtor received medical diagnosis or treatment within six month preceding the effective date of coverage and which caused or substantially contributed to the death of that individual within six months following the effective date of coverage. The effective date of coverage for each part of the coverage attributable to a new advance or charge to the plan account is the date on which the advance or charge is posted to the account. |
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| Experience Reports | 50 IL Adm. Code 951.60 a) | Each credit life insurer must file annually (no later than June 30) with the Department of Insurance and the NAIC Support & Services Office a report of its business written in Illinois on a calendar year basis. | |
| Rate Reviews | 50 IL Adm. Code 951.60 b) | The Department will review the appropriateness of insurer rates (see 50 IL Adm. Code 951.50) every three years. | |
| Rate Increases | 50 IL Adm. Code 951.70 b) | No credit life insurer may charge or collect a premium rate higher than the prima facie rate, unless it files it with the Department sixty days prior to the intended effective date and provides credible Illinois experience data, actuarial procedures and ratemaking assumptions in support of its proposed rate. |