Bill Text: GA HB736 | 2011-2012 | Regular Session | Introduced

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Bill Title: Insurance; discretionary clauses in disability contracts; prohibit use

Sponsorship: Partisan Bill (Democrat 6)

Status: (Introduced - Dead) 2012-01-23 - House Second Readers [HB736 Detail]

Download: Georgia-2011-HB736-Introduced.html

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12 LC 37 1252

House Bill 736

By: Representatives Bruce of the 64th, McKillip of the 115th, Mosby of the 90th, Frazier of the 123rd, Dawkins-Haigler of the 93rd, and others

A BILL TO BE ENTITLED
AN ACT

To amend Article 1 of Chapter 24 of Title 33 of the Official Code of Georgia Annotated, relating to general provisions relative to insurance, so as to prohibit the use of discretionary clauses in disability insurance contracts; to provide for definitions; to provide for related matters; to provide for applicability; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 1 of Chapter 24 of Title 33 of the Official Code of Georgia Annotated, relating to general provision relative to insurance, is amended by adding a new Code section to read as follows:

"33-24-18.1.

(a) As used in this Code section, the term:

(1) 'Commissioner' means the Commissioner of Insurance.

(2) 'Disability income protection coverage' means a policy, contract, certificate, or agreement that provides for periodic payments, weekly or monthly, for a specified period during the continuance of disability resulting from either sickness or injury or a combination of them.

(3) 'Person' means an individual, a corporation, a partnership, an association, a joint venture, a joint stock company, a trust, an unincorporated organization, any similar entity, or combination of the foregoing.

(b) No policy, contract, certificate, or agreement offered, issued, or delivered in this state providing for disability income protection coverage shall contain a provision purporting to reserve discretion to the insurer to interpret the terms of the contract, or to provide standards of interpretation or review that are inconsistent with the laws of this state.

(c) Any person who knowingly or negligently violates this Code section shall be subject to the penalties provided by Code Section 33-2-24 or to any greater applicable penalty provided by law."

SECTION 2.

This Act shall be applicable to policies issued on or renewed after July 1, 2012.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.