Rule 120-2-107-.12. Insurance on Property; Amounts; Terms

1. (1) A creditor in a consumer loan transaction may not contract for or receive a charge for insurance against loss or damage to property unless:

   1. (a) the insurance covers a substantial risk of loss of or damage to property related to the loan transaction;
   2. (b) the amount, terms, and conditions of insurance are reasonable in relation to the character and value of the property insured or to be insured; and
   3. (c) the term of the insurance is reasonable in relation to the term of credit.
2. (2) The term of the insurance is reasonable if it is customary and does not extend substantially beyond a scheduled maturity.
3. (3) No household goods insurance may be written where the maximum premium approved by the Georgia Insurance Department is less than one dollar ($1.00).

Authority: O.C.G.A. §§ 33-2-9, 7-3-11(3).

History. Original Rule entitled "Insurance on Property; Amounts; Terms" adopted. F. Dec. 8, 2020; eff. Dec. 31, 2020, as specified by the Agency.