Purpose of section.

- This section recognizes and seeks to protect the interest of the insured debtor in credit life insurance. Betts v. Brown, 218 Ga. 782, 136 S.E.2d 365 (1964).

Subsection (b) of former Code 1933, § 56-3306 (see O.C.G.A. § 33-31-7) and paragraph 3 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 was 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).

Construction of subsection (d).

- Subsection (d) of former Code 1933, § 56-3306 (see O.C.G.A. § 33-31-7) must be construed in connection with former Code 1933, § 56-3305 (see O.C.G.A. § 33-31-5) to the effect that the term of any credit life insurance shall be subject to acceptance by the insurer. Coats v. Vulcan Life & Accident Ins. Co., 128 Ga. App. 731, 197 S.E.2d 788 (1973).

Policy of credit life insures life of debtor and not debt and such insurance is not wholly for the benefit of the creditor-beneficiary. National Life Assurance Co. v. Massey-Ferguson Credit Corp., 136 Ga. App. 311, 220 S.E.2d 793 (1975).

When estate of deceased debtor pays the debt, it is subrogated to claims of creditor and debtor to the proceeds of the policy. National Life Assurance Co. v. Massey-Ferguson Credit Corp., 136 Ga. App. 311, 220 S.E.2d 793 (1975).

Contents of contract of group insurance.

- Contract of group insurance consists of both the master policy and the certificate of insurance. The insured is bound by provisions, including exclusions, in the master policy even though no reference is made to such provisions in the certificate because the certificate usually contains a disclaimer that it is not the whole contract, and it is within the power of the insured to obtain a copy of the master policy to learn all the provisions in the contract. Investor's Nat'l Life Ins. Co. v. Norsworthy, 160 Ga. App. 340, 287 S.E.2d 66 (1981).

Certificate of credit insurance is evidence of coverage under the master policy. Cherokee Credit Life Ins. Co. v. Baker, 119 Ga. App. 579, 168 S.E.2d 171 (1969).

Certificate holder is bound by the provisions of the master policy. Cherokee Credit Life Ins. Co. v. Baker, 119 Ga. App. 579, 168 S.E.2d 171 (1969).

Master policy and certificate must be construed together.

- In construing a contract of group insurance, the master group policy and the certificate of insurance must be construed together for it takes both to make the contract. Cherokee Credit Life Ins. Co. v. Baker, 119 Ga. App. 579, 168 S.E.2d 171 (1969).

Insurance, including group insurance, is a matter of contract, and the language used is to be construed by giving the usual and ordinary meaning to the contract in arriving at the intention of the parties; if there is no ambiguity, the contract must be construed to mean what the contract says. Cherokee Credit Life Ins. Co. v. Baker, 119 Ga. App. 579, 168 S.E.2d 171 (1969).

Unauthorized issuance of certificates exceeding company's liability.

- When a provision appears in the master group policy that all agreements of the company must be signed by its president or secretary and that no other person can waive or alter the policy provisions, issuance by an agent of certificates in excess of the company's liability under the specific terms of the policy cannot increase the liability of the company beyond that provided in the policy. Cherokee Credit Life Ins. Co. v. Baker, 119 Ga. App. 579, 168 S.E.2d 171 (1969).

Action by insured on policy.

- Absent notice of the terms of the master policy, an insured is entitled to maintain an action on the policy the insured offered to purchase and which offer the insurer has accepted. Investor's Nat'l Life Ins. Co. v. Norsworthy, 160 Ga. App. 340, 287 S.E.2d 66 (1981).

Insured mortgagor has a legal interest in a group credit disability insurance policy. Walker v. Omaha Mut. Indem. Co., 835 F.2d 857 (11th Cir. 1988).

Subsection (c) requires delivery of policy or certificate to debtor.

- Subsection (c) of O.C.G.A. § 33-31-7 requires delivery of the credit life, accident, or sickness policy or certificate to the debtor, regardless of who pays the premium. Robinson v. Volunteer State Life Ins. Co., 175 Ga. App. 292, 333 S.E.2d 171 (1985).

Acceptance or rejection of applications within given time period.

- Subsection (d) of O.C.G.A. § 33-31-7 has not been construed to place upon insurance companies who receive applications any duty to accept or reject within 30 days of the date of indebtedness or even within some "reasonable time." Had the legislature intended to create such a duty, the legislature could easily have done so. All Am. Assurance Co. v. Brown, 177 Ga. App. 402, 339 S.E.2d 611 (1985), overruled on other grounds, Centennial Ins. Co. v. Sandner, Inc., 259 Ga. 317, 380 S.E.2d 704 (1989).

Cited in Pioneer Homeowners Life Ins. Co. v. Hogan, 110 Ga. App. 887, 140 S.E.2d 212 (1965); Cullers v. Home Credit Co., 130 Ga. App. 441, 203 S.E.2d 544 (1973); Poe v. Founders Life Assurance Co., 145 Ga. App. 757, 245 S.E.2d 166 (1978).