Current through Rules and Regulations filed through September 23, 2024
(1) Coverage.
(a) Dual interest automobile insurance shall insure both creditor and debtor as their interest may appear against loss or damage caused by fire, theft, and collision.
(b) Single interest automobile insurance shall insure only the interest of the creditor loss payee or assignee against loss caused by fire, theft and collision.
(2) Rates. The rates for both single interest and dual interest automobile shall be those which meet the applicable standards and requirements contained in Chapter 9 of Title 33 of the Official Code of Georgia Annotated and the applicable Rules and Regulations of the Georgia Insurance Department.
(3) Term and Type Coverage Permitted. Single interest insurance coverage issued in connection with a loan contract made under the provisions of the Georgia Installment Loan Act shall not exceed the term of said loan contract. Automobile insurance coverage issued in connection with loans made under the provisions of the Georgia Installment Loan Act shall be limited to fire, theft, and collision, or comprehensive and collision.
(4) Refund of premiums.
(a) All unearned premiums on single interest automobile insurance shall be refunded according to the Rule of 78's.
(b) All unearned premiums on dual interest automobile insurance shall be refunded on a pro-rata basis when canceled by the insurer and on a short rate basis when canceled by the insured.
(5) Limitation of coverage.
(a) Single interest automobile insurance may be written in an amount not to exceed the face amount of the loan or the actual market value of the automobile, whichever is smaller.
(b) Dual interest automobile insurance may be written in an amount not to exceed the actual cash value of the automobile as determined by authorized publications of the insurance industry. Coverage is not limited by the face amount of the note.
(6) Loss Payee. No licensee shall require automobile insurance to be written on an automobile 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.
(7) Insurance on Dual Collateral.
(a) When household goods and an automobile are both pledged as security on a loan and the actual cash value of the automobile and the market value of the household goods together are less than the face amount of the loan, the insurance written shall be for the actual market value of the automobile and the household goods. This applies regardless of whether or not single interest or dual interest coverage is written on any of the policies.
(b) In the event the actual market value of the automobile and the household goods exceed the face amount of the contract and single interest insurance is written on both types of collateral, the amount of coverage shall not exceed the face amount of the contract.
(c) A licensee shall not divide the amount of insurance written on collateral in such a manner as to penalize a borrower in the amount of insurance premium he is required to pay.
(d) Insurance written may exceed the face amount of the contract in the event the actual cash value of an automobile exceeds the amount of the contract and dual interest coverage is provided. If household goods are included as security on the loan, insurance coverage shall not be written on such household goods.
(e) All insurance written on personal property pledged as security for a loan shall be written in one contract. No licensee shall write fire, theft, and collision insurance with $50.00, or some other amount, deductible and then write a separate single interest policy on the same automobile for the deductible amount.
(f) Where equity in an automobile which has been or is being financed with insurance coverage, is pledged as security for a loan, insurance may be written only to cover that period of the life of the loan that is not covered by the existing contract of insurance.
O.C.G.A. §§
33-2-9, 7-3-11(3).
