Ga. Comp. R. & Regs. R. 120-2-27-.06 - Joint Credit Insurance Policies
(1) Where a credit life insurance policy or
certificate is issued to cover two lives jointly, the amount of credit life
insurance shall be made payable upon the death of the first to die during the
term of the policy, and the policy or certificate will then terminate. The
phrase "two lives" as used in the preceding sentence means only persons who are
jointly and severally liable for repayment of the single indebtedness and are
joint signers of the instrument of indebtedness. Endorsers and guarantors are
not eligible for such credit insurance coverage covering joint lives. Joint
life coverage shall not be written covering more than two lives. Jointly
indebted persons shall not be covered separately at single life
rates.
(2) Where a credit
disability insurance policy or certificate is issued to cover two persons
jointly, the credit disability insurance benefits shall be payable as provided
in the policy, upon the disability of one of the persons. The phrase "two
persons" as used in the preceding sentence means only persons who are jointly
and severally liable for repayment of the single indebtedness and are joint
signers of the instrument of indebtedness. Endorsers and guarantors are not
eligible for joint disability insurance coverage. Joint disability coverage
shall not be written covering more than two persons. Jointly indebted persons
shall not be covered separately at single disability rates.
(3) If a credit life policy containing a
suicide exclusion is issued on joint lives, the policy must be specific
regarding termination of the policy, or continuation of the policy on the life
of the survivor, and appropriate refunds to be made in the event suicide does
occur.
(4) All joint credit
insurance policy forms and rates must be filed with and approved by the
Commissioner prior to their use.
Notes
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