Compilation of Rules and Regulations of the State of Georgia
Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER
Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE
Subject 120-2-107 - INSURANCE WRITTEN IN CONNECTION WITH LOANS UNDER THE GEORGIA INSTALLMENT LOAN ACT
Rule 120-2-107-.05 - Household Goods Fire Insurance

(1) Coverage.

(2) Rates. The rates for both single interest and dual interest household goods insurance shall be approved by the Georgia Insurance Department. Rates may differ between single and dual interest insurance and between protected and unprotected areas.

(3) No household goods insurance may be written where the maximum premium approved by the Georgia Insurance Department is less than one dollar ($1.00).

(4) Refund of premiums. All unearned premiums on single or dual interest household goods insurance included on a loan contract on items pledged as collateral to secure a loan shall be refunded according to the Rule of 78's. Refunds shall be given on all insurance contracts canceled before the expiration date.

(5) Limitation, Coverage.

(6) Loss Payee. No licensee shall require fire insurance to be written on any household goods pledged as security for a loan if the borrower produces evidence that such pledged property is insured for the term of the loan and endorses the insurance policy to the licensee as assignee or loss payee. A licensee, who requires insurance on collateral pledged to secure a loan and who writes such insurance, shall be liable to the borrower in case of loss covered by the policy in the full amount even though coverage is provided by other insurance. The licensee cannot deny liability, or any part thereof, on the grounds that said collateral is covered by other insurance.