Subject 120-2-42 READABILITY STANDARDS FOR PERSONAL LINES POLICIES
The purpose of this Regulation is to establish minimum standards of readability for homeowners insurance policies, tenant homeowners insurance policies, and personal automobile insurance policies.
|(1)||"Commissioner" means the Commissioner of Insurance of this State.|
|(2)||"Form" means a separately titled or numbered form which forms a part of a policy.|
|(3)||"Insurer" means any property or casualty insurer licensed to do business in this State.|
|(4)||"Policy" means an insurance contract of homeowners, tenant homeowners, or personal automobile insurance delivered or issued for delivery in this State.|
|(5)||"Regulation" shall mean Chapter 120-2-42 of the Rules and Regulations of the Georgia Insurance Department.|
Policies and forms subject to this Regulation shall meet the following standards:
|(a)||The policy shall include a table of contents of important provisions.|
|(b)||Each section shall be self-contained and independent. However, general provisions applicable to more than one section may be included in a common section.|
|(c)||The policy, except for declarations pages, schedules, and tables, shall be printed in not less than ten-point type, one-point leaded.|
|(d)||The policy shall be printed in a legible type-style with adequate contrast between ink and paper. Captions, headings, and spacing shall be used to increase overall legibility.|
|(e)||The policy shall be written in everyday conversational language consistent with its standing as a contract. Short sentences and a personal style shall be used wherever possible.|
|(f)||Technical terms and words with special meaning shall be avoided wherever possible.|
|(g)|| The policy text shall achieve a minimum
score of forty (40) on the Flesch Reading Ease Test or an equivalent score on
any other comparable test or a lower score on either if the Commissioner finds
the policy reasonably easy to read. For purposes of this Regulation, a Flesch
Reading Ease Test shall be scored by the following methods:
This Regulation shall be applicable to all policies delivered or issued for delivery in this State.
Filings subject to this Regulation shall be accompanied by a certificate signed by an officer of the insurer stating that it meets the minimum reading ease score on the test used or stating that the score is lower than the minimum required but should be approved in accordance with subparagraph (g) of Rule 120-2-42-.04. To confirm the accuracy of any certification, the Commissioner may require the submission of further information to verify the certification in question.
All new and renewal policies with effective dates on or after July 1, 1988, shall comply with this Regulation. For purposes of this Regulation, continuous policies shall be deemed to be renewed at the six-month anniversary date next following this implementation date.
Any insurer, agent, representative, officer, or employee of such insurer, failing to comply with the requirements of this Regulation shall be subject to such penalties as may be appropriate under the insurance laws of this State.
If any provision of this Regulation or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the Regulation or the applicability of such provision to other persons or circumstances shall not be affected.