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 120-2-27 - CREDIT LIFE AND CREDIT ACCIDENT AND SICKNESS INSURANCE FORMS › Rule 120-2-27-.08 - Minimum Requirements for Credit Accident and Sickness Insurance Forms

Current through Rules and Regulations filed through June 27, 2024
All credit accident and sickness insurance forms filed with
				  the Commissioner pursuant to the provisions of Sections
				  33-24-9 and
				  33-31-8 of the Georgia Code for
				  use in this State which do not meet the following minimum standards shall be
				  deemed to be forms which contain provisions which are unjust, unfair,
				  inequitable, misleading, deceptive or which encourage misrepresentation of the
				  policy and therefore shall be disapproved by the Commissioner or the previous
				  approval thereof withdrawn:
(1) The
				form shall not contain any exclusions for preexisting conditions except
				conditions which, within six months prior to the effective date of the
				coverage, manifested themselves to the insured debtor by requiring medical
				consultation, diagnosis, or treatment, provided that such preexisting
				conditions cause loss commencing within six months following the effective date
				of the coverage. However, disability commencing six months or more after the
				effective date of the coverage shall not be excluded regardless of whether or
				not such disability results from any preexisting condition.
(2) The form must contain a definition of
				"total disability" which provides coverage during the first 12 months of such
				disability even though the insured is able to perform an occupation other than
				the one he held at the time such disability occurred. During the first 12
				months of such disability, the definition of "total disability" must relate
				such disability, to the occupation of the debtor at the time the disability
				occurred. After such disability continues for more than 12 months, the
				definition of "total disability" may relate such continuing disability to the
				inability to perform any occupation for which the debtor is reasonably fitted
				by education, training or experience. The provisions of this subsection shall
				not apply to credit accident and sickness insurance policies which provide
				exclusively for payment of the policy proceeds in a lump sum in the event of
				"total disability."
(3) The form
				shall provide that in event the indebtedness covered by the policy results from
				the refinancing in whole or in part of a prior debt with the same creditor, any
				period of exclusion for preexisting conditions shall be reduced by any period
				that creditor-debtor disability coverage was in force in connection with the
				prior indebtedness.
(4) The form
				shall provide for the payment of a daily benefit equal in amount to at least
				one-thirtieth of the scheduled monthly payments on the indebtedness or their
				equivalent if the debt is repayable periodically at terms differing from
				monthly.
(5) The form shall contain
				either no age restrictions whatsoever, or shall contain only those age
				restrictions which make ineligible for coverage debtors who have attained age
				65 at the time the indebtedness is incurred or who will have attained age 66
				prior to the maturity date of the indebtedness. However, coverage will remain
				in effect and benefits shall be payable to the beneficiaries under the policy
				or certificate, notwithstanding the age of the debtor, in cases where an
				individual policy or certificate is issued to a debtor who has correctly stated
				his age on the application.
(6) The
				form shall contain either no other exclusions whatsoever or only those
				exclusions which exclude coverage for disability resulting from normal
				pregnancy, intentionally self-inflicted injuries, from flight in non-scheduled
				aircraft, or from war or military service.
(7) The form shall state that the insurer
				shall not deny a claim due to the debtor's subsequent unemployment or
				retirement during the term of the insurance.
O.C.G.A. Secs.
				  33-2-9,
				  33-30-1,
				  33-31-7,
				  33-31-8,
				  33-31-12.