Current through Rules and Regulations filed through September 23, 2024
(1) Evidence of insurance. All insurance authorized and included in or incident to a loan contract made under the provisions of the Georgia Installment Loan Act shall be evidenced by a policy or certificate of insurance which shall be delivered to the borrower at the time the indebtedness is incurred. The policy and the certificate of insurance shall describe the amount and term of the coverage, the amount of the premium and a description of the coverage including any exceptions, limitations or restrictions. If a policy or certificate of insurance is not delivered to the borrower at the time the indebtedness is incurred, the insurer shall cause to be delivered to the borrower a policy or certificate of insurance within 30 days of incurred indebtedness. An application or notice of proposed insurance form shall serve as a binder during the first 30 days of incurred indebtedness.
(2) If any loan within the Georgia Installment Loan Act is made in conjunction with the sale of insurance authorized and included in or incidental to the advancement of funds at the expense of the borrower, then the licensee shall provide to the borrower a separate written disclosure statement. The disclosure statement shall disclose, in no smaller than twelve-point type, the following:
(a) The cost to the borrower of any such insurance.
(b) A copy of the signed document shall be provided to the borrower, and the licensee shall retain the original in the loan file.
(3) Payment of Claims.
(a) No licensee under the act shall execute any contract or agreement with any person, firm or corporation which permits such licensee to retain any portion of the premium for payment of losses incurred or to be incurred under policies or certificates of insurance.
(b) No plan or arrangement shall be used whereby any person, firm or corporation other than the insurance company or its designated claim agent or representative shall be authorized to settle or negotiate the settlement of claims.
(c) Each individual policy, group policy and certificate of insurance shall state that the benefits payable there under shall only be paid to the licensee to reduce or extinguish the borrower's then outstanding loan balance in the case of credit life insurance coverage; or for the exact amount of the borrower's covered installment payment due in the case of credit accident and sickness insurance. Each individual policy, group policy and certificate of insurance shall further state that if the amount of insurance benefits payable exceeds the borrower's outstanding insured loan balance in the case of credit life insurance; or the exact amount of the borrower's covered installment payment due in the case of credit accident and sickness insurance by an amount of one dollar ($1) or more, such excess amounts shall be payable either to the borrower or to a beneficiary named by the borrower other than the creditor or to the borrower's estate.
(d) Payment of any such excess amount to the borrower or to any beneficiary named by the borrower other than the licensee or to the borrower's estate shall be made payable only to such borrower or to such other beneficiary named by the borrower. The delivery of such excess benefit check or draft may be accomplished by the licensee acting as an authorized agent of the insurer. For the purpose of this rule, the term "excess amount" shall mean any amount which is payable to the borrower or to the beneficiaries of the borrower other than the licensee or to the borrower's estate under the credit insurance policy which exceeds the amount necessary to extinguish the borrower's then outstanding insured loan balance in the case of credit life insurance, or the exact amount of the borrower's covered installment payment due in the case of credit accident and sickness insurance by an amount of one dollar ($1) or more.
(e) Where proceeds from insurance written in connection with a loan under the Act prepays an account in full, a refund shall be made on interest, fees, and insurance premiums computed as of the date of the event insured against.
(f) Insurance proceeds paid on a loan and credited to the account by the finance company shall have the same effect as if a like amount was paid by the borrower and no late charges shall be charged to any borrower for any such payments or accounts which have been paid by such insurance proceeds.
(4) Agents and Agents' Commissions.
(a) All individual insurance solicited, sold and issued in conjunction with a loan contract under the provisions of the Georgia Installment Loan Act shall be solicited, sold and issued by an agent, subagent or limited subagent licensed under the provisions of the Georgia Insurance Code.
(b) No licensee or any other person subject to the provisions of the Georgia Installment Loan Act or the Rules and Regulations of the Office of Commissioner of Insurance shall contract for, charge, collect, or accept, directly or indirectly as an insurance agent or general agent or through any contract of credit life or credit accident and sickness insurance written or procured by such licensee pursuant to the Georgia Installment Loan Act as remuneration for the sale of such insurance in this state any commissions, service fees, or other forms of compensation other than those which are contained in the written agency agreement or agency contract between such insurer and its agent.
(c) No person shall solicit, directly or indirectly, make or cause to be made any contract of credit insurance unless such person holds a valid agent, subagent, or a limited subagent license.
(d) All licensees and any other persons subject to the provisions of the Georgia Installment Loan Act or the Rules and Regulations of the Office of Commissioner of Insurance shall be required in the handling of insurance to comply in all respects with the applicable requirements of Title 33 of the Official Code of Georgia Annotated, and of the Rules and Regulations of the Office of Commissioner of Insurance.
(5) Any agent, subagent, agency or licensee writing credit life or credit accident and sickness insurance in this state shall provide forms necessary to file claims within fifteen (15) calendar days of a request with reasonable explanations regarding their use and shall forward such claim to the insurer within twenty (20) business days of receipt of written proof of loss.
(6) Quarterly Insurance Reports. Quarterly Insurance Reports shall be filed with this department on a form obtained from the Insurance Commissioner on or before the 20th of each month following the quarters ending March 31, June 30, September 30 and December 31. Such forms shall reflect the number of loans made with insurance coverage, amount of loans, total premiums charged, refunds, net premium charged, the percent of insurance claims paid to net premiums collected, and name of the insuring company as to:
(a) Life insurance;
(b) Accident and sickness insurance;
(c) Household goods fire insurance;
(d) Automobile insurance;
(e) Non-recording insurance.
§§
33-2-9, 7-3-11(3).
