Rule 120-2-26-.05 - Disclosure of Note Obligation(1) The fact that a promissory note is to be executed by the insured must: (a) Be set forth in the Application, preceding the applicant's signature;(b) Show the amount of the note for premiums;(c) Specify the true rate of interest of the note;(d) Give the amount of any down payment made at the time of taking the application; and(e) If applicable, State the fact that the note becomes due and payable in full upon any default in premium payment.(2) A down payment of at least ten dollars ($10.00) must be paid by the insured at the time the application is signed.(3) The down payment must be paid by the applicant in cash, or its equivalent, and any payment made directly or indirectly by the agent to or for the benefit of the applicant in connection with the sale shall be presumed to be a rebate or special inducement.Ga. Comp. R. & Regs. R. 120-2-26-.05
O.C.G.A. Sec. 33-2-9, Ch. 33-6.
Original Rule entitled "Disclosure of Note Obligation" adopted. F. July 18, 1972; eff. August 7, 1972.Submitted for Publishing: Mar. 15, 2007.