Current through Rules and Regulations filed through March 20, 2024
(1) Coverage. Credit accident and sickness
insurance may be written on all loans made under the provisions of the Georgia
Installment Loan Act. Provided, however, any such insurance written in
connection with such a loan shall not provide for monthly benefits which exceed
the amount of one monthly repayment installment loan.
(2) Rates.
(a) On loans where the actual amount of cash
advanced is one hundred dollars ($100.00) or less, no credit accident and
sickness insurance shall be written which provides a waiting period in excess
of three (3) days, coverage shall be retroactive and no premium shall be
charged for such insurance in excess of $3.06 per annum per five dollars
($5.00) per month benefit unless otherwise authorized by law and applicable
Rules and Regulations.
(b) On loans
where the actual amount of cash advanced is in excess of one hundred dollars
($100.00), no credit accident and sickness insurance shall be written which
provides a waiting period in excess of seven days. Coverage shall be
retroactive and no premium shall be charged for such insurance in excess of
$2.10 per annum for five dollars ($5.00) per month benefit unless otherwise
authorized by law and applicable Rules and Regulations. Provided, however, if
the waiting period is three (3) days, no premium shall be charged for such
insurance in excess of $3.06 per annum for five dollars ($5.00) per month
benefit unless otherwise authorized by law and applicable Rules and
Regulations.
(3) Policy
status at renewal, refinancing or prepayment of entire contract.
(a) If through prepayment the indebtedness is
discharged prior to the scheduled maturity date, the insured in all instances
(except for group coverage which must be canceled) shall be given the option
either to cancel or to retain such insurance. The option to cancel or to retain
shall be set forth in writing either as a part of the policy or by separate
written statement furnished to the debtor.
(b) In the event of renewal or refinanced
accounts where credit accident and sickness insurance is written on the new
loan, any unexpired credit accident and sickness insurance written in
connection with the previous loan or loans shall be concurrently canceled and
proper credit given the debtor by refunding to him the unearned portion of the
premium on the former policy or policies.
(4) Refund of Premiums.
(a) All unearned premiums on credit accident
and sickness insurance shall be refunded according to the Rule of 78's without
regard to a minimum refund provision.
(b) Refunds shall be made in all instances of
insurance cancellations due to prepayments, renewals, and refinancing with the
exception of the loan being prepaid in full by accident and sickness insurance
proceeds; in this event accident and sickness premiums shall be considered
earned unless otherwise provided in the insurance contract.
(5) Claim Forms. All insurance
companies writing accident and sickness insurance in connection with loans made
under the Georgia Installment Loan Act shall use medical claim forms wherein a
doctor's signature is required in connection with making claims for losses
occurring under accident and sickness policies.
(6) Claims relative to renewals and
refinancing. Renewal or refinancing of a loan shall not operate to extinguish
an insurance contract when as an incident to such renewal or refinancing
another insurance contract is entered into by the same insurer and insured. Any
new insurance contract issued incident to such renewal or refinancing shall be
a continuation of the original contract and any waiting periods or existing
disease provisions shall relate to the date of the initial insurance
contract.
(7) No credit accident
and sickness policy shall be issued in this State to cover two lives
jointly.
O.C.G.A.
§§
33-2-9,
7-3-11(3).
