05
SB167/AP
Senate
Bill 167
By:
Senators Rogers of the 21st, Hudgens of the 47th, Stephens of the 27th and
Stoner of the 6th
AS
PASSED
AN
ACT
To
amend Code Section 33-31-9 of the Official Code of Georgia Annotated, relating
to refunds and credits of credit life insurance premiums, so as to provide that
the insured shall notify the credit life insurer upon the early payoff of the
indebtedness; to provide for certain notices; to provide for related matters; to
provide for legislative intent; to provide an effective date; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 33-31-9 of the Official Code of Georgia Annotated, relating to refunds
and credits of credit life insurance premiums, is amended by striking subsection
(c) and inserting in lieu thereof a new subsection (c) to read as
follows:
"(c)
Each individual policy, notice of proposed insurance, or group certificate of
credit life insurance and credit accident and sickness insurance shall provide
that, in the event of termination of the insurance prior to the scheduled
maturity date of the indebtedness, any refund of premium due shall be calculated
as of the date the indebtedness terminated and be paid or credited promptly to
the person entitled to such refund; provided, however, that the Commissioner
shall prescribe a minimum refund and no refund which would be less than such
minimum need be made. The formula to be used in computing a refund shall be
filed with and approved by the Commissioner. It shall be the obligation of the
insured to notify the insurer of the early payoff of the indebtedness which is
covered by the insurance.
(c.1)
Each individual policy, notice of proposed insurance, or group certificate of
credit life insurance and credit accident and sickness insurance issued after
this subsection becomes effective shall provide a notice on the face of such
policy, notice, or certificate in at least 10 point type that it is the
obligation of the insured to notify the insurer of any early payoff of the
indebtedness which is covered by the
insurance."
SECTION
2.
This
Act is declaratory of existing law and is only intended to clarify such law.
The passage of this Act shall not create any implication that any change in
existing law is effected.
SECTION
3.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.