Rule 120-2-107-.04 - Credit Accident and Sickness Insurance(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.Ga. Comp. R. & Regs. R. 120-2-107-.04
O.C.G.A. §§ 33-2-9, 7-3-11(3).
Original Rule entitled "Credit Accident and Sickness Insurance" adopted. F. Dec. 8, 2020; eff. Dec. 31, 2020, as specified by the Agency.