O.C.G.A. § 33-31-1 (2019)
Definitions
As used in this chapter, the term: (1) ‘‘Credit accident and sickness insurance’’ means insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy. (2) ‘‘Credit life insurance’’ means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction. (3) ‘‘Creditor’’ means the lender of money or vendor or lessor of goods, services, property, rights, or privileges for which payment is arranged through a credit transaction or any successor to the right, title, or interest of any such lender, vendor, or lessor and an affiliate, associate, or subsidiary of any of them or any director, officer, or employee of any of them or any other person in any way associated with any of them. (4) ‘‘Debtor’’ means a borrower of money or a purchaser or lessee of goods, services, property, rights, or privileges for which payment is arranged through a credit transaction. (5) ‘‘Indebtedness’’ means the total amount payable by a debtor to a creditor in connection with a loan or other credit transaction.
History
Code 1933, § 56-3302, enacted by Ga. L. 1960, p. 289, § 1.
Annotations
Cross references. - Definition of accident and sickness insurance, § 33-7-2. Definition of life insurance, § 33-7-4.
Law reviews. - For survey article on insurance law for the period from June 1, 2002 through May 31, 2003, see 55 Mercer L. Rev. 277 (2003).
JUDICIAL DECISIONS Paragraph (1) of this section makes it clear that it is the life of the debtor, not the debt itself, which is insured by credit life insurance. Betts v. Brown, 219 Ga. 782, 136 S.E.2d 365 (1964). Paragraph (3) of former Code 1933, § 56-3302 (see O.C.G.A. § 33-31-1) and paragraph (2) of former Code 1933, § 56-3306 (see O.C.G.A. § 33-31-7(b)) clearly provide that the transferee of the loan becomes the creditor entitled, upon the death of the insured, to the proceeds of the policy necessary to pay the amount due upon the loan; no change in the creditor beneficiary originally designated in the policy or notice of the transfer to the
insurance company is necessary to effect a valid transfer of the loan. Universal Am. Life Ins. Co. v. Finance Corp. of Am., 118 Ga. App. 160, 162 S.E.2d 813 (1968). Insurable interest may not exceed indebtedness to be secured. - Creditor has, for the purpose of indemnification against loss, but for no other, an insurable interest in the life of a debtor; and this interest cannot exceed in amount that of the indebtedness to be secured. Such indebtedness may, however, include the cost of taking out and keeping up the insurance, if made a charge against the debtor or the debtor’s estate, or upon the proceeds of the policy when collected. Vulcan
Life & Accident Ins. Co. v. United Banking Co., 118 Ga. App. 36, 162 S.E.2d 798 (1968). Cited in Poe v. Founders Life Assurance Co., 145 Ga. App. 757, 245 S.E.2d 166 (1978); Credithrift of Am., Inc. v. Whitley,
190 Ga. App. 833, 380 S.E.2d 489 (1989); Printis v. Bankers Life Ins. Co., 276 Ga. 697, 583 S.E.2d 22 (2003); Flynt v. Life of the South Ins. Co., 312 Ga. App. 430, 718 S.E.2d 343 (2011).
RESEARCH REFERENCES Am. Jur. 2d. - 43 Am. Jur. 2d, Insurance, §§ 3, 6. C.J.S. - 44 C.J.S., Insurance, §§ 9,
394 et seq. 46A C.J.S., Insurance, § 2229 et seq.