TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER m: CREDIT LIFE AND CREDIT ACCIDENT INSURANCE
PART 1052 CREDIT ACCIDENT AND HEALTH INSURANCE

Section 1052.15 Purpose

Section 1052.20 Definitions

Section 1052.30 Credit Accident and Health Insurance Coverage

Section 1052.40 Filing and Approval of Premiums


AUTHORITY: Implementing Section 155.58 and authorized by Section 155.62 of the Illinois Insurance Code [215 ILCS 5/155.58 and 155.62].


SOURCE: Filed November 20, 1959, effective December 1, 1959; codified at 7 Ill. Reg. 3006; amended at 20 Ill. Reg. 830, effective January 2, 1996; transferred from the Department of Insurance to the Department of Financial and Professional Regulation pursuant to Executive Order 2004-6 on July 1, 2004; transferred from the Department of Financial and Professional Regulation to the Department of Insurance pursuant to Executive Order 2009-4 in June 2009; recodified from Part 952 to Part 1052 at 41 Ill. Reg. 15872.

 

Section 1052.15  Purpose

 

The purpose of this Part is to establish procedures and standards for the review and approval of credit accident and health insurance policy forms.

 

(Source:  Added at 20 Ill. Reg. 830, effective January 2, 1996)

 

Section 1052.20  Definitions

 

            "Credit accident and health insurance" means insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy [215 ILCS 5/155.52(b)].

 

(Source:  Added at 20 Ill. Reg. 830, effective January 2, 1996)

 

Section 1052.30  Credit Accident and Health Insurance Coverage

 

If coverage for credit accident and health insurance is contingent upon the insured working a minimum amount of hours a week, then the application for insurance must contain a question eliciting a response indicating that the insured does or does not currently work the minimum number of hours. Additionally, if the credit accident and health insurance is offered on a guaranteed issue basis, the individual policy or group certificate must include a clear statement that stipulates the minimum of hours that must be worked a week.

 

(Source:  Added at 20 Ill. Reg. 830, effective January 2, 1996)

 

Section 1052.40  Filing and Approval of Premiums

 

In determining whether or not the benefits in any policy form submitted by an insurer for approval are "reasonable" in relation to the premium, an ultimate loss ratio of fifty percent (50%) will be deemed to provide benefits reasonable in relation to the premium.

 

(Source:  Section 952.40 renumbered from Section 952.10 and amended at 20 Ill. Reg. 830, effective January 2, 1996)