Ga. Comp. R. & Regs. R. 120-2-47-.08 - Prohibited Acts
(1) Unless licensed as an insurance company,
a service contract provider shall not use in its name, contracts, or
literature, any of the words "insurance," "casualty," "surety," "mutual," or
any other words descriptive of the insurance, casualty, or surety business or
deceptively similar to the name or description of any insurance or surety
corporation, or any other service contract provider.
(2) A service contract provider shall not,
without the written consent of the purchaser, knowingly charge a purchaser for
duplication of coverage or duties required by state or federal law, a warranty
expressly issued by a manufacturer or seller of a product or any implied
warranty enforceable against the lessor, seller, or manufacturer of a
product.
(3) A service contract
provider shall not make, permit, or cause any false or misleading statements,
either oral or written, in connection with the sale, offer to sell, or
advertisement of a service contract.
(4) A service contract provider shall not
permit or cause the omission of any material statement in connection with the
sale, offer to sell, or advertisement of a service contract, which under the
circumstances should have been made in order to make the statements that were
made not misleading.
(5) A service
contract provider shall not make, permit, or cause any false or misleading
statements, either oral or written, about the benefits or services available
under the service contract.
(6) A
service contract provider shall not make, permit, or cause any statement or
practice which has the effect of creating or maintaining a fraud.
(7) A service contract provider is prohibited
from making, publishing, disseminating, circulating, or placing before the
public, or causing, directly or indirectly, to be made, published,
disseminated, circulated, or placed before the public in a newspaper, magazine
or other publication, or in the form of a notice, circular, pamphlet, letter or
poster, or over any radio or television station or in any other way, an
advertisement, announcement, or statement containing any assertion,
representation, or statement with respect to the service contract industry or
with respect to any service contract provider which is untrue, deceptive, or
misleading.
(8) A bank, savings and
loan association, insurance company, other lending institution, or insurance
producer shall not require the purchase of a service contract as a condition of
a loan or insurance.
(9) A service
contract provider is prohibited from making publishing, disseminating, or
circulating, directly or indirectly, or aiding, abetting, or encouraging the
making, publishing, disseminating, or circulating of any oral or written
statement or any pamphlet, circular, article, or literature which is false, or
maliciously critical of or derogatory to the financial condition of any person,
and which is calculated to injure such person.
(10) A service contract provider is
prohibited from entering into any agreement to commit, or by any concerted
action committing, any act of boycott, coercion or intimidation resulting in or
tending to result in unreasonable restraint of, or monopoly in the service
contract industry.
(11) A service
contract provider is prohibited from knowingly filing with any supervisory or
other public official, or knowingly making, publishing, disseminating,
circulating, or delivering to any person, or placing before the public, or
knowingly causing directly or indirectly, to be made, published, disseminated,
circulated, delivered to any person, or placed before the public, any false
material statement of fact as to the financial condition of a person.
(12) A service contract provider is
prohibited from knowingly making any false entry of a material fact in any
book, report, or statement of any person or knowingly omitting to make a true
entry of any material fact pertaining to the business of such person in any
book, report or statement of such person.
(13) A service contract provider shall not
invoke any arbitration provision contained in the service contract.
(14) No provider or insurance producer shall
finance the consideration due from the sale of a service contract with a
premium finance company.
Notes
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