§ 73.136. Filing of forms and rates.
(a) Approval of forms and rates. Individual policies, group policies, group certificates, notices of proposed insurance, applications for insurance, endorsements and riders delivered or issued for delivery in this Commonwealth and premium rates and formulas used in this Commonwealth shall be filed with the Commissioner for approval in accordance with section 7 of the act (40 P. S. § 1007.7).
(b) Identification of filing. Each filing of an individual or group policy or group certificate shall be accompanied by a filing letter describing the specific type of credit instruments with which the form will be used. If the coverage is equal to the net unpaid indebtedness, the filing letter shall describe the method used to determine how the interest is earned. If an approved form is to be used with a type of credit instrument other than that stated in the original filing letter, or the method for earning interest is other than that as stated in the original filing letter, a new filing letter describing the specific type of loan and the interest charge calculation shall be filed.
(c) Readability.
(1) Forms shall be written in understandable language, which is not confusing or misleading to a person of average intelligence. Forms shall contain a definition or explanation of terminology that would not be ordinarily understood by a person of average intelligence.
(2) Forms may not contain inconsistent or contradictory language or provisions.
(3) Policies and group certificates shall accurately and completely explain the coverage and conditions of coverage. Group certificates shall be consistent with the group policies and contain provisions applicable only to insured debtors.
(d) Combination forms. Insurers may provide life coverage, life coverage with TPD benefit, A and H coverage (any and all benefit plans), or unemployment coverage (any and all benefit plans) on either a single coverage or joint coverage basis within the same policy or certificate. Every individual policy or group certificate shall provide a means of identifying which debtor is insured under which coverage.
(e) Identity of insurer.
(1) Forms shall disclose the identity of the insurer.
(2) If more than one insurer provides credit insurance coverages, a multicompany insurance application, policy or group certificate may be used, as long as the form clearly discloses which insurer provides which coverage.
(f) Credit instrument application.
(1) If an insurer relies on the credit insurance election portion of a credit instrument as the application for insurance, the credit insurance election portion shall be filed with the Department for approval. Once approved, the identical credit insurance election portion of the form may be incorporated into other credit instruments without the necessity of refiling the credit insurance election form.
(2) If an insurer relies on the credit election portion of a credit instrument as the application for insurance, the credit insurance election portion shall be clearly differentiated in appearance from the rest of the credit instrument.
(g) Identification. No credit insurance rate book, rate chart, rate card, rate table, or refund table may be used or distributed in this Commonwealth, unless the premium payment, gross or net coverage basis and plan of benefits appear therein.
(h) Out-of-State coverage. If a group policy of credit insurance has been issued in another state, the insurer shall:
(1) File for approval the group certificate and notice of proposed insurance to be delivered or issued for delivery in this Commonwealth.
(2) Certify that the rates to be charged do not exceed the rates of the insurer on file with the Department.
(3) Identify the applicable rates on file with the Department. If no applicable rates are on file, file for approval the premium rates and formulas in accordance with § 73.106, § 73.109, § 73.112 and § 73.113.
(4) File the group policy with the Department for information purposes only.
Cross References This section cited in 31 Pa. Code § 73.113 (relating to voluntary unemployment insurance rate standards); 31 Pa. Code § 73.139 (relating to credit insurance on open end loans); 31 Pa. Code § 73.140 (relating to credit insurance on closed end variable interest loans); 31 Pa. Code § 73.141 (relating to credit insurance on lease transactions); 31 Pa. Code § 73.142 (relating to credit insurance on fixed residential loans); and 31 Pa. Code § 73.143 (relating to credit insurance on balloon loans).
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