Rule 120-2-107-.05 - Household Goods Fire Insurance(1) Coverage. (a) Dual interest household goods insurance shall insure both the creditor and the debtor as their interest may appear against loss or damage caused by fire, lightning and collision;(b) Single interest household goods insurance shall insure only the interest of the Creditor Loss Payee or assignees against loss or damage caused by fire, lightning and collision.(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. (a) On loans where household goods are the only collateral and the actual market value is equal to or exceeds the face amount of the note, the insurance written shall not exceed the face amount of the note.(b) On loans where household goods are the only collateral and the actual market value is less than the face amount of the note, insurance, if written, shall be for the actual market value of the household goods.(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.Ga. Comp. R. & Regs. R. 120-2-107-.05
O.C.G.A. §§ 33-2-9, 7-3-11(3).
Original Rule entitled "Household Goods Fire Insurance" adopted. F. Dec. 8, 2020; eff. Dec. 31, 2020, as specified by the Agency.