Current through Rules and Regulations filed through March 20, 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).
