Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-102 - GUARANTEED ASSET PROTECTION WAIVERS › Rule 120-2-102-.05 - General Requirements and Conditions

Current through Rules and Regulations filed through June 27, 2024
(1) Guaranteed asset protection waivers may
				be offered, sold, or provided to borrowers in this state in compliance with
				this chapter.
(2) Guaranteed asset
				protection waivers may, at the option of the creditor, be sold for a single
				payment or may be offered with a monthly or periodic payment option.
(3) Notwithstanding any other provision of
				law, any cost to the borrower for a guaranteed asset protection waiver entered
				into in compliance with the federal Truth in Lending Act,
				15 U.S.C.
				1601
et seq.
, and its
				implementing regulations, as they may be amended from time to time, must be
				separately stated and is not to be considered a finance charge or
				interest.
(4) The guaranteed asset
				protection waiver shall remain a part of the finance agreement upon the
				assignment, sale, or transfer of such finance agreement by the
				creditor.
(5) Neither the extension
				of credit, the term of credit, nor the term of the related motor vehicle sale
				or lease may be conditioned upon the purchase of a guaranteed asset protection
				waiver.
(6) Any creditor that
				offers a guaranteed asset protection waiver must report the sale of, and
				forward funds received on, all such waivers to the designated party, if any, as
				prescribed in any applicable administrative services agreement, contractual
				liability policy, other insurance policy or other specified program
				documents.
(7) Funds received or
				held by a creditor or administrator and belonging to an insurer, creditor, or
				administrator pursuant to the terms of a written agreement must be held by such
				creditor or administrator in a fiduciary capacity.
(8) Contractual liability or other insurance
				policies insuring guaranteed asset protection waivers must state the obligation
				of the insurer to reimburse or pay to the creditor any sums the creditor is
				legally obligated to waive under the guaranteed asset protection waivers issued
				by the creditor and purchased or held by the borrower.
(9) Coverage under a contractual liability or
				other insurance policy insuring a guaranteed asset protection waiver must also
				cover any subsequent assignee upon the assignment, sale, or transfer of the
				finance agreement.
(10) Coverage
				under a contractual liability or other insurance policy insuring a guaranteed
				asset protection waiver must remain in effect unless cancelled or terminated in
				compliance with the applicable insurance laws of this state.
(11) The cancellation or termination of a
				contractual liability or other insurance policy must not reduce the insurer's
				responsibility for guaranteed asset protection waivers issued by the creditor
				prior to the date of cancellation or termination and for which premium has been
				received by the insurer.
O.C.G.A. Sec.
				  33-2-9 and O.C.G.A. Chapter
				  33-63.