Rule 120-2-107-.07 - Non-Recording Insurance(1) No licensee shall charge any recording fee, or actual premiums on insurance used in lieu of such recording fee unless the amount of such fee or premium be fully set forth in the copy of the loan contract or voucher furnished to the borrower.(2) Non-recording insurance may be written on loans with a face amount in excess of $100.00. Such insurance may be written in lieu of recording the security instrument with the proper "public official or agency of the State" and protects the lender against losses.(3) Rates. The rates for such non-recording insurance 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.(4) Restrictions. (a) If no security exists on a loan, charges for non-recording insurance are illegal.(b) A licensee shall not select non-recording insurance instead of recording if the choice will cost the borrower more money.(5) Commissions. A licensee shall not deduct a fee or commission from the borrower's payment of non-recording insurance premiums. Where commissions are returned to the lender, such shall be credited to the customer's account.Ga. Comp. R. & Regs. R. 120-2-107-.07
O.C.G.A. §§ 33-2-9, 7-3-11(3).
Original Rule entitled "Non-Recording Insurance" adopted. F. Dec. 8, 2020; eff. Dec. 31, 2020, as specified by the Agency.