Ga. Comp. R. & Regs. 120-2-27-.10

Current through Rules and Regulations filed through June 17, 2024

Rule 120-2-27-.10 - Prohibited Transactions; Unfair Trade Practices Defined

The following practices, when engaged in by insurers in connection with the sale or placement of credit insurance in this State or as an inducement thereto, shall constitute unfair methods of competition and unfair or deceptive acts or practices in the business of insurance in this State and shall constitute the establishment or perpetuation of a condition or conditions in this State which are detrimental to free competition in the business of insurance and injurious to the public as provided for and defined in O.C.G.A. § 33-6-4(b)(8) and in O.C.G.A. § 33-6-13(a):

(a) the offer or grant by an insurer either directly or indirectly, to a creditor agent or managing general agent of any special advantage or service other than the payment of commissions, service fees, or other forms of compensation which are set forth in the agency agreement or agency contract between the insurer and its agent or managing general agent;

(b) an agreement by an insurer to deposit with a bank or financial institution money or securities of the insurer with the design or intent that the same shall have an effect on or take the place of a deposit of money or securities which otherwise would be required of such creditor by such bank or financial institution as a compensating balance or offsetting deposit for a loan or other advancement; and

(c) an agreement by an insurer to deposit money or securities with a creditor bank or financial institution without interest or at a lesser rate of interest than is currently being paid by the creditor bank or financial institution to other depositors of like amounts. This paragraph shall not be construed to prohibit the maintenance by an insurer of such demand deposits or premium deposit accounts deemed reasonably necessary for use in the ordinary course of the insurer's business.

Ga. Comp. R. & Regs. R. 120-2-27-.10

O.C.G.A. Secs. 33-2-9, 33-6-4, 33-6-13, 33-31-12.

Original Rule entitled "Prohibited Transactions; Unfair Trade Practices Defined" adopted. F. Mar. 8, 1977; eff July 1, 1977, as specified by the Agency.

Repealed: New Rule of same title adopted. F. Oct. 12, 1993; eff. Nov. 1, 1993.

Submitted for Publishing: Apr. 6, 2007.