Credit unemployment insurance rates

1. Each insurer filing rates for credit unemployment insurance shall include in its rate filing with the commissioner the appropriate rate formula upon which its rates are based, including a provision for anticipated losses. Anticipated losses that develop or are expected to develop a loss ratio of not less than forty-five percent shall be presumed reasonable. Anticipated losses may include an amount for fluctuation in loss due to catastrophe based on the experience of at least the latest nine policy years or as long as the company has been writing this line of business. If coverage is sold on a joint basis involving two people, the factor for calculating the rate is 1.8. 2. Credit unemployment insurance policies must contain benefits at least as favorable to insureds as the provisions below: a. Coverage for unemployment for any reason, except that coverage may be excluded for: (1) Voluntary forfeiture of salary, wage, or other employment income; (2) Resignation; (3) Retirement; (4) General strike; (5) Illegal walkout; (6) War; (7) Separation from the military; (8) Willful misconduct or criminal misconduct or unlawful behavior; and (9) Disability caused by injury, sickness, or pregnancy. b. For credit unemployment insurance which provides for a monthly benefit in the event of unemployment, benefits must start after a waiting period of not longer than thirty days but need not be retroactive to the first day of unemployment and must have a maximum benefit period that is no shorter than six months. 3. Credit unemployment insurance policies may not contain eligibility requirements more restrictive than the restrictions below: a. Exclusion from qualification for coverage: (1) Self-employed individuals; (2) Workers in seasonal or temporary jobs, defined as jobs designed to last six consecutive months or less; and (3) Debtors who have been notified either orally or in writing of any layoff or of employment termination either now or within the next sixty days. This exclusion must be disclosed to all prospective insureds. b. No employment requirement more restrictive than one requiring that the debtor be employed full time on the effective date of coverage for at least twelve consecutive months prior to the effective date of coverage. "Full time" means a regular workweek of not less than thirty hours. c. An age restriction providing that no insurance will become effective on debtors on or after the attainment of age sixty-six and that all insurance will terminate upon attainment by the debtor of age sixty-six.