HB 1381 - Fire prevention districts; ins rate classification; regulation

First Reader Summary

A BILL to amend Code Section 33-9-4 of the Official Code of Georgia Annotated, relating to standards applicable to making and use of insurance rates, so as to regulate fire insurance rate classification for local fire prevention districts; and for other purposes.

Tolbert, Scott (25th) Harbin, Ben (113th) Rogers, Carl (20th)
McCall, Tom (90th) Jamieson, Mary Jeanette (22nd) Mills, James W (21st)
Status Summary HC: Ins SC: LA: 01/28/98 H - Read 2nd Time
Page Numbers - 1/ 2
House Action Senate
1/27/98 Read 1st Time
1/28/98 Read 2nd Time

HB 1381                                            LC 25 0833 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Code Section 33-9-4 of the Official Code of Georgia 
  1- 2  Annotated, relating to standards applicable to making and 
  1- 3  use of insurance rates, so as to regulate fire insurance 
  1- 4  rate classification for local fire prevention districts; to 
  1- 5  repeal conflicting laws; and for other purposes. 
 
  1- 6       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 7                           SECTION 1. 
 
  1- 8  Code Section 33-9-4 of the Official Code of Georgia 
  1- 9  Annotated, relating to standards applicable to making and 
  1-10  use of insurance rates, is amended by striking paragraph (7) 
  1-11  and inserting in lieu thereof the following: 
 
  1-12        "(7) (A) Risks may be grouped by classifications for 
  1-13        the establishment of rates and minimum premiums. 
  1-14        Classification rates may be modified to produce rates 
  1-15        for individual risks in accordance with rating plans 
  1-16        which establish standards for measuring variations in 
  1-17        hazards or expense provisions, or both. Such standards 
  1-18        may measure any difference among risks that have a 
  1-19        probable effect upon losses or expenses. 
  1-20        Classifications or modifications of classifications of 
  1-21        risks may be established based upon size, expense, 
  1-22        management, individual experience, location or 
  1-23        dispersion of hazard, or any other reasonable 
  1-24        considerations.  Such classifications and 
  1-25        modifications shall apply to all risks under the same 
  1-26        or substantially the same circumstances or conditions; 
  1-27        provided, however, the Commissioner shall establish 
  1-28        the maximum amount of any such modification;. 
 
  1-29        (B) The provisions of subparagraph (A) of this 
  1-30        paragraph notwithstanding, all property within the 
  1-31        boundaries of an established local fire prevention 
  1-32        district shall be placed in the same fire insurance 
  1-33        rate class without regard to location. The fire 
  1-34        insurance rate classification for property within an 
 
 
 
                                 -1- 
 
 
 
  2- 1        established local fire prevention district which has a 
  2- 2        mean response time which does not exceed the response 
  2- 3        time required for a fire which is five road miles 
  2- 4        distant at a fire engine travel speed of 35 miles per 
  2- 5        hour shall be the same as the rate classification 
  2- 6        otherwise assigned to property located within five 
  2- 7        road miles of a primary responding fire station.  Fire 
  2- 8        insurance rate classifications for property shall be 
  2- 9        graduated such that the classification for an 
  2-10        established local fire prevention district having a 
  2-11        mean response time which exceeds the response time 
  2-12        required for a fire which is five road miles distant 
  2-13        at a fire engine travel speed of 35 miles per hour 
  2-14        differs from the rate assigned to property located 
  2-15        within five road miles of a primary responding fire 
  2-16        station by not more than one sequential class for each 
  2-17        minute that the mean response time exceeds the 
  2-18        response time required for a fire which is five road 
  2-19        miles distant at a fire engine travel speed of 35 
  2-20        miles per hour. For purposes of this subparagraph, 
  2-21        'primary responding fire station' means the fire 
  2-22        station which responds on a first call basis to 
  2-23        property located within that fire station's assigned 
  2-24        area of responsibility; and 'response time' means a 
  2-25        fire department's fire engine travel time from the 
  2-26        time of leaving the fire station until arriving at the 
  2-27        scene of the fire;". 
 
  2-28                           SECTION 2. 
 
  2-29  All laws and parts of laws in conflict with this Act are 
  2-30  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -2- 

Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 04/20/98

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