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O.C.G.A. § 33-31-5 — Date insurance becomes effective; duration and termination of insurance | Georgia Code

O.C.G.A. § 33-31-5 (2018) Copy Cite Official Site Syfertize CourtListener Scholar Amendments

TITLE 33 INSURANCE

Section 31. Credit Life Insurance and Credit Accident and Sickness Insurance, 33-31-1 through 33-31-12.

ARTICLE 2 PREFERRED PROVIDER ARRANGEMENTS

33-31-5. Date insurance becomes effective; duration and termination of insurance.

The term of any credit life insurance or credit accident and sickness insurance shall commence, subject to acceptance by the insurer, on the date when the debtor becomes obligated to the creditor, except that, where a group policy provides coverage with respect to existing obligations, the insurance on a debtor with respect to the indebtedness shall commence on the effective date of the policy. In no event, however, in the case of a contract obligation involving future delivery or performance, must the insurance become effective before the date of such delivery or completion of such performance or before the date when all of the terms of the indebtedness are set forth in the contract or instrument creating the indebtedness. The term of the insurance shall not extend more than 15 days beyond the scheduled maturity date of the indebtedness, except when extended without additional cost to the debtor. If the indebtedness is discharged due to renewal or refinancing prior to the scheduled maturity date, the insurance in force shall be terminated before any new insurance may be issued in connection with the renewed or refinanced indebtedness. In all cases of termination prior to scheduled maturity, a refund shall be paid or credited as provided in Code Section 33-31-9.

(Code 1933, § 56-3305, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 1990, p. 8, § 33.)

JUDICIAL DECISIONS

Credit life insurer was required to refund unearned premiums despite policy provision requiring written notice.

- Credit life insurer's failure to refund unearned premiums unless an insured provided written notice to the insurer constituted a breach of the legal duty the insurer owed to the insureds to refund unearned premiums under O.C.G.A. § 33-31-5. The notice requirement in the policy was not a condition precedent or express stipulation of forfeiture, and failure to return unearned premiums was a breach of the insurer's obligation of good faith and fair dealing. Res. Life Ins. Co. v. Buckner, 304 Ga. App. 719, 698 S.E.2d 19 (2010).

Cited in Cherokee Credit Life Ins. Co. v. Glisson, 124 Ga. App. 527, 184 S.E.2d 479 (1971); Welmaker v. W.T. Grant Co., 365 F. Supp. 531 (N.D. Ga. 1972); Poe v. Founders Life Assurance Co., 145 Ga. App. 757, 245 S.E.2d 166 (1978); All Am. Assurance Co. v. Brown, 177 Ga. App. 402, 339 S.E.2d 611 (1985).

OPINIONS OF THE ATTORNEY GENERAL

Refinancing must present "pyramiding" problem for section to apply.

- While a proposed practice might be a "refinancing" within the literal meaning of this section, if it does not present the "pyramiding" problem which concerned this section's framers it would not constitute the particular variety of refinancing to which this section was meant to apply. 1974 Op. Att'y Gen. No. 74-113.

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This Georgia Code resource is curated by a Florida and Georgia attorney, a personal injury and workers' compensation attorney admitted in Georgia (State Bar of Georgia No. 881027, since 2006) and Florida. Attorney Syfert regularly works with Title 33 in the context of Georgia insurance coverage law and represents clients throughout Northeast Florida and South Georgia. For legal consultation, call 904-383-7448.