| (a) The insurer, by its group policy, may authorize the group policyholder-creditor to issue certificates of group insurance or may authorize a legally appointed insurance agent of the insurer to issue certificates of insurance or policies of insurance, and respectively, to collect the insurance charge under the group policy, or premium therefor under an individual policy, provided that the master group insurance policy with the creditor or the agent's agreement with the agent under which such authority is granted shall require that: (1) the creditor issue such group certificate, or the agent issue such certificate of insurance or insurance policy in the name of the insurer, and payment of the respective policy premium shall be by a check payable to the insurer or by deposit to an account of the insurer under the sole control of the insurer; (2) a "home office" copy of each certificate or policy so issued, or electronic or other data therefor which can be substantiated by such certificate or policy, together with the premium therefor, shall be delivered to the insurer within 30 days after the close of the calendar month in which the certificate or policy is issued; (3) refunds of unearned premiums shall be made in accordance with this subchapter; and (4) no creditor or creditor agent may knowingly issue any group certificate of insurance which, alone, or in conjunction with other group certificates issued on the same risk, will in the aggregate exceed the group credit life insurance limits of this state. (b) No insurer may authorize, and no insurance agent, or group policyholder within their respective capacities may issue any policy or certificate of insurance or collect any premium or insurance charge therefor or make any refund of premium, except only pursuant to and in accordance with either a master group insurance policy or an agent's agreement in compliance with this section. |
