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 120-2-47 - RULES AND REGULATIONS FOR VEHICLE AND AUTOMOBILE CLUB SERVICE CONTRACTS › Rule 120-2-47-.08 - Prohibited Acts

Current through Rules and Regulations filed through June 27, 2024
(1) Unless licensed as an insurance company,
				a service contract provider shall not use in its name, contracts, or
				literature, any of the words "insurance," "casualty," "surety," "mutual," or
				any other words descriptive of the insurance, casualty, or surety business or
				deceptively similar to the name or description of any insurance or surety
				corporation, or any other service contract provider.
(2) A service contract provider shall not,
				without the written consent of the purchaser, knowingly charge a purchaser for
				duplication of coverage or duties required by state or federal law, a warranty
				expressly issued by a manufacturer or seller of a product or any implied
				warranty enforceable against the lessor, seller, or manufacturer of a
				product.
(3) A service contract
				provider shall not make, permit, or cause any false or misleading statements,
				either oral or written, in connection with the sale, offer to sell, or
				advertisement of a service contract.
(4) A service contract provider shall not
				permit or cause the omission of any material statement in connection with the
				sale, offer to sell, or advertisement of a service contract, which under the
				circumstances should have been made in order to make the statements that were
				made not misleading.
(5) A service
				contract provider shall not make, permit, or cause any false or misleading
				statements, either oral or written, about the benefits or services available
				under the service contract.
(6) A
				service contract provider shall not make, permit, or cause any statement or
				practice which has the effect of creating or maintaining a fraud.
(7) A service contract provider is prohibited
				from making, publishing, disseminating, circulating, or placing before the
				public, or causing, directly or indirectly, to be made, published,
				disseminated, circulated, or placed before the public in a newspaper, magazine
				or other publication, or in the form of a notice, circular, pamphlet, letter or
				poster, or over any radio or television station or in any other way, an
				advertisement, announcement, or statement containing any assertion,
				representation, or statement with respect to the service contract industry or
				with respect to any service contract provider which is untrue, deceptive, or
				misleading.
(8) A bank, savings and
				loan association, insurance company, other lending institution, or insurance
				producer shall not require the purchase of a service contract as a condition of
				a loan or insurance.
(9) A service
				contract provider is prohibited from making publishing, disseminating, or
				circulating, directly or indirectly, or aiding, abetting, or encouraging the
				making, publishing, disseminating, or circulating of any oral or written
				statement or any pamphlet, circular, article, or literature which is false, or
				maliciously critical of or derogatory to the financial condition of any person,
				and which is calculated to injure such person.
(10) A service contract provider is
				prohibited from entering into any agreement to commit, or by any concerted
				action committing, any act of boycott, coercion or intimidation resulting in or
				tending to result in unreasonable restraint of, or monopoly in the service
				contract industry.
(11) A service
				contract provider is prohibited from knowingly filing with any supervisory or
				other public official, or knowingly making, publishing, disseminating,
				circulating, or delivering to any person, or placing before the public, or
				knowingly causing directly or indirectly, to be made, published, disseminated,
				circulated, delivered to any person, or placed before the public, any false
				material statement of fact as to the financial condition of a person.
(12) A service contract provider is
				prohibited from knowingly making any false entry of a material fact in any
				book, report, or statement of any person or knowingly omitting to make a true
				entry of any material fact pertaining to the business of such person in any
				book, report or statement of such person.
(13) A service contract provider shall not
				invoke any arbitration provision contained in the service contract.
(14) No provider or insurance producer shall
				finance the consideration due from the sale of a service contract with a
				premium finance company.
O.C.G.A. Secs.
				  7-3-1
et seq.
,
				  33-2-9,
				  33-7-6.