Legal Question in Insurance Law in Georgia

I would like to provide something similar to insurance with my electronics company. Does the only thing that would separate an insurance company from a warranty company the ability for insurance to cover stolen property? With my "service contract" that I would like to offer customers, would be a monthly recurring charge to them. Does this monthly recurring charge mean that I would have to register as an insurance company or not. Again, I am not planning on marketing it as insurance but rather as a service agreement in which the customer would pay a monthly recurring fee. There would be no deductible in the sense of when the customer needed a repair they would not be paying out of pocket they would simply be have paid it out of their monthly fees. If you could tell me if what I would like to do is legal I would appreciate it. Thanks.


Asked on 1/23/10, 10:27 am

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

If you plan to be in the insurance and warranty business, and this is what you plan, there are many laws which you must comply with. You will need a lawyer and regulatory approval. Unless you expect to make lots from this fee, the cost of setting it up may exceed your profit.

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Answered on 1/28/10, 11:32 am


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