Involuntary Unemployment

Creditor Group involuntary Unemployment Insurance

Creditor Group Involuntary Unemployment Insurance is not available in Quebec or Atlantic provinces.

In case of involuntary unemployment, Creditor group loss of employment (LOE) insurance takes care of your monthly loan re-payments towards the financing or lease of a vehicle while unemployed*. Involuntary unemployment means job-loss or layoff which is not attributed to your action, inaction, option or desire and was not anticipated on or prior to the effective date of insurance. With an eligible LOE claim, the insured monthly payment of the loan will be paid to the financial institution, to relieve the burden on you and your loved ones.

* Depending on the coverage offered to you by your dealer, you may be covered for the entire insurance term, or up to certain number of months per certificate or per claim. Please refer to your certificate of insurance for the details of the coverage, definitions, conditions, limitations and exclusions.

Note: Creditor Group Loss of Employment Insurance is sometimes combined with Creditor Group Accidental Disability insurance and categorized under Accidental Plus insurance on the certificate of insurance.

Waiting Period

There is usually a 30 day Elimination waiting period for LOE insurance. This means that the payment of benefits start to accrue after the 30 day waiting period has elapsed.

As with any insurance product, there are eligibility requirements and you need to make sure you are aware of the limitations and exclusions as listed on the certificate.

Eligibility Requirements

  • be within the eligible age range as indicated on the certificate of insurance

  • meet the minimum hours of work requirement as stated on the certificate of insurance

Note: eligibility requirements may vary depending on the insurance program offered to you by your dealer. Please refer to the eligibility section of your certificate of insurance. At the time of purchase of insurance coverage, after reviewing the eligibility requirement, you need to decide if you are eligible for the coverage. If unsure, please contact our eligibility line at 1-800-761-4655.

20 Day Free Look

You will have 20 days after the effective date of the insurance to decide whether or not you want the coverage. If not, the certificate should be returned to our divisional headquarters or the dealer you purchased the insurance from and we will cancel the insurance and refund any premium paid jointly to you and/or the financial institution named on the certificate.

Limitations and Exclusions

As with any insurance product, there are some limitations and exclusions varying from product to product and from provider to provider. Make sure to refer to the back of the insurance certificate for a complete list.

Here are some common examples of the limitations and exclusion you would see on group creditor insurance specific to involuntary loss of employment:

No benefit shall be payable for Involuntary Unemployment that results directly or indirectly from:

  • Involuntary Unemployment occurring anytime during a period of 90 days following the Effective Date of Insurance; or
  • retirement or early retirement or receipt of retirement benefits under the Canada or Quebec Pension Plans; or
  • voluntary resignation; or
  • deception, fraud, criminal conduct, conflict of interest, willful misconduct or refusal to perform one's position; or
  • lock-out or strike; or
  • self-employment or Seasonal employment; or
  • failure to be re-elected as or termination of one's duties as an elected municipal, provincial or federal official; or
  • expiry of a contract of employment for a fixed term.

In addition to the above exclusions, if Involuntary Unemployment occurs within 12 months of the Effective Date of Insurance, no benefit shall be payable for Involuntary Unemployment that results directly or indirectly from:

  • any staff reduction program announced by an employer prior to the Effective Date of Insurance; or
  • any layoff which includes either in a general or specific manner the position of an Insured and which is initiated prior to the Effective Date of Insurance; or
  • Involuntary Unemployment pursuant to notice of possible Involuntary Unemployment provided prior to the Effective Date of Insurance.

Conditions of Payment

As a condition of payment of Involuntary Unemployment benefits, the Insured must:

  • submit an application for unemployment benefits under the Employment Insurance Act (Canada) immediately upon being eligible to do so;
  • be eligible to collect benefits under the Employment Insurance Act (Canada);
  • be actively seeking employment during the period of Involuntary Unemployment;
  • submit copies of their weekly stubs from benefit payments received under the Employment Insurance Act (Canada).