A Georgia servicer force-places a policy in 2026 at 4 times the going premium and the lapse was genuine. Does a genuine lapse excuse an unfair or unreasonable force-placed insurance charge?
Correct Answer
D) Still prohibited: the charge related to that coverage must be fair
The two force-placed rules operate together: a reasonable basis is needed to place the coverage at all, and separately the servicer may not obtain force-placed insurance that imposes an unreasonable charge or fee. Other choices: the genuine lapse satisfies the first rule and not the second; a replacement window does not make the charge reasonable; and profit is not the test. Source: Ga. Comp. R. & Regs. 80-11-6-.02(2)(j)
Why This Is the Correct Answer
The two force-placed rules operate together: a reasonable basis is needed to place the coverage at all, and separately the servicer may not obtain force-placed insurance that imposes an unreasonable charge or fee. Other choices: the genuine lapse satisfies the first rule and not the second; a replacement window does not make the charge reasonable; and profit is not the test. Source: Ga. Comp. R. & Regs. 80-11-6-.02(2)(j)
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