Ga. Comp. R. & Regs. R. 120-2-47-.13 - Exemptions
(1) This Regulation
is not applicable to vehicle service contracts or extended warranty agreements,
if the vehicle service contract or extended warranty is made by the automobile
vehicle manufacturer or otherwise excluded from property insurance as defined
by O.C.G.A. ยง
33-7-6(b)(1).
(2) Code Section
33-7-6(b)(1) is
not applicable to vehicle service contracts or extended warranty agreements if
such contract or agreement has a term not exceeding nine months, has been
approved by the Commissioner before its use, and is issued by a retail
installment seller in conjunction with the sale of a vehicle. Moreover, such
retail installment seller must:
(a) Maintain
or have a parent company which maintains a net worth or stockholders' equity of
a least $50 million, provided the parent company guarantees the obligations of
the retail installment seller arising from vehicle service contracts or
extended warranty agreements issued by the retail installment seller.
(b) Comply with the exemption application
requirements prescribed by the Commissioner including but not limited to the
provision of names, addresses, FEIN numbers, affiliates, and corporate
officers.
(c) Files with the
Commissioner, a copy of its form 10-K or form 20-F disclosure statements, or if
it does not file such statements with the United States Securities and Exchange
Commission a copy or its audited financial statement on a GAAP basis. If the
retail installment seller's financial statements are consolidated with those of
its parent company, then the retail installment seller may comply with this
provision by filing the statements of its parent company. The statement shall
be filed with the Commissioner 30 days prior to the retail installment sellers
initial offering or delivering of a service contract or extended warranty
agreement and thereafter the statement shall be filed with the Commissioner
annually; and
(d) Upon the request
of the Commissioner posts a security deposit or surety bond guaranteeing the
retail installment sellers obligations in accordance with the terms of vehicle
service contracts or extended warranty agreements issued by the retail
installment seller in an amount not to exceed $250,000.
(3) This Regulation is not applicable to
insurance policies issued by an authorized insurer providing service contract
benefits to its insured.
Notes
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