New York Laws
Article 34 - Insurance Contracts-Property/casualty
3436*2 - Group Credit Unemployment Insurance and Individual Credit Unemployment Insurance.

(b) No policy of group credit unemployment insurance, and no
certificate thereunder, shall be delivered or issued for delivery in
this state unless it conforms to the requirements of this section and
section three thousand two hundred one of this chapter.
(c) A policy of group credit unemployment insurance may only be issued
to a creditor, vendor, trustee, trustees or agent insuring a group of
debtors or vendees, all as defined and set forth in paragraph three of
subsection (b) of section four thousand two hundred sixteen of this
chapter and under the same conditions and limitations and subject to the
definitions as specified therein; provided, however, that the amount of
benefits payable with respect to any person insured thereunder shall not
at any time exceed:
(1) in all cases except as hereinafter provided the lesser of
fifty-five thousand dollars and the total of payments scheduled to be
paid by the person to whom credit has been extended;
(2) in the case of a loan commitment pursuant to a program for
defraying the cost of attendance of a student at a college or university
or at an elementary or secondary school providing education for minors,
the lesser of fifty-five thousand dollars and the total amount of the
unpaid balance of the scheduled periodic payments whether due or not due
and the amount of any outstanding loan commitment pursuant to such a
program;
(3) in the case of a transaction secured by a real estate mortgage,
the lesser of one hundred ten thousand dollars and the total of payments
scheduled to be paid by the person to whom credit has been extended; or
(4) in all cases the amounts of the payment or payments due during the
period of unemployment of the covered person, excluding such amounts
which may have become due by acceleration or default.
(d) Benefits under a policy of group credit unemployment insurance may
be provided to a debtor or vendee only if such debtor or vendee
qualifies for unemployment insurance benefits in this state pursuant to
article eighteen of the labor law or would qualify thereunder but for
exclusion therefrom pursuant to subdivision three, four, five, six, ten
or eleven of section five hundred eleven of the labor law, or by reason
of exhaustion of benefits or length of employment. No insurance company
writing a policy permitted by this section shall, directly or
indirectly, through an agent or representative, have standing to
participate in a hearing or court proceeding in which the eligibility
for unemployment insurance benefits of an insured under this section
shall be in controversy, unless the insured was an employee of said
company.
(e) Credit unemployment insurance may be written separately or in
combination with all or any of the kinds of insurance authorized in
paragraphs three, seven and twenty of subsection (a) of section one
thousand one hundred thirteen of this chapter. The superintendent may by
regulation prohibit or limit any combination based upon the amount of
insured indebtedness or the amount of premium. The premium rate for each
kind of insurance shall be disclosed and the total premium charge for
the combination shall likewise be disclosed.
(f) Acceptance of credit unemployment insurance by a debtor must be
voluntary and not a condition of extending credit nor a factor in the
cost of the credit agreement other than the cost of credit unemployment
insurance. The insurance agreement must be signed and dated separately
from the request for credit and must clearly and conspicuously disclose

to the debtor (1) that the insurance coverage is not required by the
creditor and (2) the cost of the credit unemployment insurance.
(g) (1) Any dividend hereafter apportioned on any participating group
insurance policy, or any rate reduction hereafter made or continued on
any non-participating group policy for the first or any subsequent year
of insurance under any such policy heretofore or hereafter issued under
this section, may be applied to reduce the policyholder's part of the
cost of such policy, except that the excess, if any, of the insured's
aggregate contribution under the policy over the net cost (gross premium
less dividends or rate reductions) of the insurance shall be applied at
the discretion of the insurer either as a cash payment to the insured or
to reduce the insured's premium. If a dividend or rate reduction is
payable upon termination of the policy the insurer shall either make
payment to the insured or to the policyholder upon receipt of a
certification from the policyholder that the dividend or rate reduction
will be distributed by the policyholder to the insureds or applied to
reduce the insured's premium.
(2) The provisions of paragraph one of this subsection shall apply to
New York residents insured under a policy issued in any other
jurisdiction to a group which is described in this section.
* NB There are 2 § 3436's

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