The following practices, when engaged in by insurers in
connection with the sale or placement of credit insurance in this State or as
an inducement thereto, shall constitute unfair methods of competition and
unfair or deceptive acts or practices in the business of insurance in this
State and shall constitute the establishment or perpetuation of a condition or
conditions in this State which are detrimental to free competition in the
business of insurance and injurious to the public as provided for and defined
in O.C.G.A. §
33-6-4(b)(8) and
in O.C.G.A. §
33-6-13(a):
(a) the offer or grant by an insurer either
directly or indirectly, to a creditor agent or managing general agent of any
special advantage or service other than the payment of commissions, service
fees, or other forms of compensation which are set forth in the agency
agreement or agency contract between the insurer and its agent or managing
general agent;
(b) an agreement by
an insurer to deposit with a bank or financial institution money or securities
of the insurer with the design or intent that the same shall have an effect on
or take the place of a deposit of money or securities which otherwise would be
required of such creditor by such bank or financial institution as a
compensating balance or offsetting deposit for a loan or other advancement;
and
(c) an agreement by an insurer
to deposit money or securities with a creditor bank or financial institution
without interest or at a lesser rate of interest than is currently being paid
by the creditor bank or financial institution to other depositors of like
amounts. This paragraph shall not be construed to prohibit the maintenance by
an insurer of such demand deposits or premium deposit accounts deemed
reasonably necessary for use in the ordinary course of the insurer's
business.
Notes
Ga. Comp. R.
& Regs. R.
120-2-27-.10
O.C.G.A. Secs.
33-2-9,
33-6-4,
33-6-13,
33-31-12.
Original Rule entitled
"Prohibited Transactions; Unfair Trade Practices Defined" adopted. F.
Mar. 8, 1977; eff
July 1, 1977, as specified by the
Agency.
Repealed: New Rule of same title adopted. F.
Oct. 12, 1993; eff.
Nov. 1, 1993.
Submitted for Publishing:
Apr. 6,
2007.