Bill Text: GA HB66 | 2011-2012 | Regular Session | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Insurance; certificate of insurance forms approved by commissioner; provide
Spectrum: Moderate Partisan Bill (Republican 6-1)
Status: (Passed) 2011-07-01 - Effective Date [HB66 Detail]
Download: Georgia-2011-HB66-Comm_Sub.html
Bill Title: Insurance; certificate of insurance forms approved by commissioner; provide
Spectrum: Moderate Partisan Bill (Republican 6-1)
Status: (Passed) 2011-07-01 - Effective Date [HB66 Detail]
Download: Georgia-2011-HB66-Comm_Sub.html
11 LC
37 1165S
The
House Committee on Insurance offers the following substitute to HB
66:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 24 of Title 33 of the Official Code of Georgia Annotated, relating
generally to insurance, so as to provide for certificate of insurance forms to
be approved by the commissioner; to provide for definitions; to provide certain
provisions of such certificate; to provide for related matters; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
24 of Title 33 of the Official Code of Georgia Annotated, relating generally to
insurance, is amended by adding a new Code section to read as
follows:
"33-24-19.1.
(a)
As used in this Code section, the term:
(1)
'Certificate' or 'certificate of insurance' means any document or instrument, no
matter how titled or described, which is prepared or issued by an insurer or
insurance producer as evidence of property or casualty insurance coverage.
'Certificate' or 'certificate of insurance' shall not include a policy of
insurance or insurance binder, including any policy of insurance which may be
referred to as a certificate.
(2)
'Certificate holder' means any person, other than a policyholder, that requests,
obtains, or possesses a certificate of insurance.
(3)
'Insurance producer' means a person required to be licensed under the laws of
this state to sell, solicit, or negotiate insurance.
(4)
'Insurer' means any person engaged as indemnitor, surety, or contractor who
issues insurance as defined by Code Sections 33-7-3 and 33-7-6. Nothing in this
Code section shall apply to or affect any offering of accident, sickness, or
disability insurance by a fraternal benefit society, as provided under Code
Section 33-15-60; nonprofit medical service corporations, as provided under
Chapters 18 and 19 of this title; health care plans, as provided under Chapter
20 of this title; health maintenance organizations, as provided under Chapter 21
of this title; any provisions of accident and sickness insurance policies
generally, as provided under Code Sections 33-24-20 through 33-24-31; individual
accident and sickness insurance, as provided under Chapter 29 of this title; or
group or blanket accident and sickness insurance, as provided under Chapter 30
of this title.
(5)
'Person' means any individual, partnership, corporation, association, or other
legal entity, including any government or governmental subdivision or
agency.
(6)
'Policyholder' means a person who has contracted with a property or casualty
insurer for insurance coverage.
(b)
No person, wherever located, may prepare, issue, or request the issuance of a
certificate of insurance unless the form has been filed with and approved by the
Commissioner of Insurance. No person, wherever located, may alter or modify an
approved certificate of insurance form.
(c)
The Commissioner of Insurance shall disapprove a form filed under this Code
section, or withdraw approval of a form, if the form:
(1)
Is unjust, unfair, misleading, or deceptive, or violates public
policy;
(2)
Fails to comply with the requirements of subsection (d) of this Code section;
or
(3)
Violates any law, including any regulation adopted by the Commissioner of
Insurance.
(d)
Each certificate of insurance must contain the following or similar statement:
'This certificate of insurance is issued as a matter of information only and
confers no rights upon the certificate holder. This certificate does not amend,
extend, or alter the coverage, terms, exclusions, and conditions afforded by the
policies referenced herein.' However, the Commissioner of Insurance may approve
a form filed under this Code section that does not state that the form is
provided for information purposes only, if such form states that the certificate
of insurance does not confer any rights or obligations other than those conveyed
by the policy and that the terms of the policy control.
(e)
Standard certificate of insurance forms promulgated by the Association for
Cooperative Operations Research and Development or the Insurance Services Office
are deemed approved by the Commissioner of Insurance and are not required to be
filed if the forms otherwise comply with the requirements of this Code
section.
(f)
No person, wherever located, shall demand or request the issuance of a
certificate of insurance from an insurer, insurance producer, or policyholder
that contains any false or misleading information concerning the policy of
insurance to which the certificate makes reference.
(g)
No person, wherever located, may knowingly prepare or issue a certificate of
insurance that contains any false or misleading information or that purports to
affirmatively or negatively alter, amend, or extend the coverage provided by the
policy of insurance to which the certificate makes reference.
(h)
No person may prepare, issue, or request, either in addition to or in lieu of a
certificate of insurance, an opinion letter or other document or correspondence
that is inconsistent with this Code section.
(i)
The provisions of this Code section shall apply to all certificate holders,
policyholders, insurers, insurance producers, and certificate of insurance forms
issued as evidence of insurance coverages on property, operations, or risks
located in this state, regardless of where the certificate holder, policyholder,
insurer, or insurance producer is located.
(j)
A certificate of insurance is not a policy of insurance and does not
affirmatively or negatively amend, extend, or alter the coverage afforded by the
policy to which the certificate of insurance makes reference. A certificate of
insurance shall not confer to a certificate holder new or additional rights
beyond what the referenced policy of insurance expressly provides.
(k)
No certificate of insurance shall contain references to contracts, including
construction or service contracts, other than the referenced contract of
insurance. Notwithstanding any requirement, term, or condition of any contract
or other document with respect to which a certificate of insurance may be issued
or may pertain, the insurance afforded by the referenced policy of insurance is
subject to all the terms, exclusions, and conditions of the policy
itself.
(l)
A certificate holder shall have a legal right to notice of cancellation,
nonrenewal, or any material change, or any similar notice concerning a policy of
insurance only if the person is named within the policy or any endorsement and
the policy or endorsement requires notice to be provided. The terms and
conditions of the notice, including the required timing of the notice, are
governed by the policy of insurance and cannot be altered by a certificate of
insurance.
(m)
Any certificate of insurance or any other document or correspondence prepared,
issued, or requested in violation of this Code section shall be null and void
and of no force and effect.
(n)
Any person who violates this Code section may be fined up to $5,000.00 per
violation.
(o)
The Commissioner of Insurance shall have the power to examine and investigate
the activities of any person that the Commissioner reasonably believes has been
or is engaged in an act or practice prohibited by this Code section. The
Commissioner of Insurance shall have the power to enforce the provisions of this
Code section and to impose any authorized penalty or remedy against any person
who violates this Code section.
(p)
The Commissioner of Insurance may adopt reasonable rules and regulations as are
necessary or proper to carry out the provisions of this Code
section."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.