Bill Text: GA HB960 | 2011-2012 | Regular Session | Introduced

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Bill Title: Insurance companies; relative to claimant's offers to settle tort claims involving liability insurance policies; provide procedure

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2012-02-16 - House Second Readers [HB960 Detail]

Download: Georgia-2011-HB960-Introduced.html

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12 LC 29 5126ER

House Bill 960

By: Representatives Lane of the 167th and Lindsey of the 54th

A BILL TO BE ENTITLED
AN ACT

To amend Chapter 4 of Title 33 of the Official Code of Georgia Annotated, relating to actions against insurance companies, so as to provide for procedure relative to claimant's offers to settle tort claims involving liability insurance policies; to provide that offers to settle automatically are deemed to include certain provisions; to provide that failure to make an offer to settle in conformity with the law precludes the recovery of a claim for bad faith or negligent failure to settle; to provide for construction; 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 4 of Title 33 of the Official Code of Georgia Annotated, relating to actions against insurance companies, is amended by adding a new Code section to read as follows:

"33-4-8.

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

(1) 'Claimant' means a person pursuing a tort claim and shall also mean a plaintiff pursuing a tort claim if a civil action has been commenced.

(2) 'Medical release' means a release that is compliant with the requirements of the federal Health Insurance Portability and Accountability Act (HIPAA) of 1996, P.L. 104-191.

(3) 'Offer to settle' includes a demand for settlement.

(4) 'Tort claim' means a claim for personal injuries or wrongful death arising out of an incident involving liability insurance policies.

(b) A claimant making an offer to settle a tort claim covered by a liability insurance policy shall:

(1) Serve the offer to settle on the insurer by certified mail or statutory overnight delivery in the manner provided by Code Section 9-11-5;

(2) Allow the insurer at least 60 days to respond to the offer to settle;

(3) Include full and complete copies of the claimant's medical, pharmacy, therapy, and similar treatment records and billing statements for treatment in connection with the tort claim that are in the possession or control of the claimant or the claimant's attorney at the time of serving the offer to settle; and

(4) Include an executed medical release for medical records from or on behalf of the claimant.

(c) Any offer to settle a tort claim covered by a liability insurance policy shall be deemed to include:

(1) That the claimant, from the settlement amount, shall settle, satisfy, extinguish, and otherwise resolve any valid and enforceable lien, right of subrogation, excluding the rights belonging to an uninsured or underinsured motor vehicle insurance carrier, or other enforceable statutory or contractually reimbursable obligation upon the claimant to a third party or upon all causes of action accruing to the claimant;

(2) That the claimant shall indemnify the insured and the insurer from any claim or loss that a responsible party may suffer as a result of the claimant's failure to resolve the third party obligations as specified in paragraph (1) of this subsection; and

(3) That the claimant's and his or her spouse's executed release in full of all claims includes a release of all derivative claims, including, but not limited to, a claim for loss of consortium, against any insured or insurer unless there is other available insurace to cover the tort claim, and in that event, then a limited liability release may be executed in favor of any insured or insurer in accordance with Code Section 33-24-41.1.

(d) Any offer to settle a tort claim covered by a liability insurance policy that does not comply with this Code section shall preclude a claimant from obtaining an award for bad faith or negligent failure to settle against the insurer.

(e) An insurer that includes the provisions of subsection (c) of this Code section in its response to an offer to settle a tort claim covered by a liability insurance policy shall not constitute a counteroffer.

(f) Nothing contained in this Code section shall require reimbursement:

(1) Of any health insurance benefit not included in the federal Employee Retirement Income Security Act of 1974 and not otherwise required by Code Section 33-24-56.1; or

(2) To any employer or insurer not otherwise required reimbursement pursuant to Code Section 34-9-11.1.

(g) Nothing in this Code section shall be construed to affect the provisions of Code Section 9-11-68."

SECTION 2.

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