Legislation	Clerk's Office	Members	Committees	Meetings	Home	Senate

HB 656 - Insurance; transactions by certain financial institutions

Bannister, Charles E (77th)	Walker, Larry (141st)	Parrish, Larry (Butch) J (144th)
Floyd, Johnny W (138th)	Maddox, George (72nd)	Henson, Michele (65th)

Status Summary	HC:	Ins	SC:	B&FI	FR:	02/16/99	LA:	05/01/00	Signed by Governor

First Reader Summary

A BILL to amend Chapter 3 of Title 33 of the Official Code of Georgia Annotated, relating to authorization and general requirements for transaction of insurance, so as to change certain provisions relating to transaction of insurance by lending institutions and bank holding companies; and for other purposes.

Code Sections - 33-3-23

HB 656 00                                           HB 656/AP 
 
      H. B. No. 656 (AS PASSED HOUSE AND SENATE) 
      By:  Representatives Bannister of the 77th, Walker of the 
      141st, Parrish of the 144th, Floyd of the 138th, Maddox of 
      the 72nd and others 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Chapter 3 of Title 33 of the Official Code of 
  1- 2  Georgia Annotated, relating to authorization and general 
  1- 3  requirements for transaction of insurance, so as to change 
  1- 4  certain provisions relating to transaction of insurance by 
  1- 5  lending institutions and bank holding companies; to provide 
  1- 6  for related matters; to repeal conflicting laws; and for 
  1- 7  other purposes. 
 
  1- 8       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 9                           SECTION 1. 
 
  1-10  Chapter 3 of Title 33 of the Official Code of Georgia 
  1-11  Annotated, relating to authorization and general 
  1-12  requirements for transaction of insurance, is amended by 
  1-13  striking Code Section 33-3-23, relating to restrictions as 
  1-14  to transaction of insurance by lending institutions and bank 
  1-15  holding companies, and inserting in lieu thereof the 
  1-16  following: 
 
  1-17    "33-3-23. 
 
  1-18    (a) For the purposes of this Code section, the term: 
 
  1-19      (1) 'Bank holding company' means the definition as set 
  1-20      forth in Code Section 7-1-600 and in Section 2 of an act 
  1-21      of Congress entitled the Bank Holding Company Act of 
  1-22      1956, as amended. 
 
  1-23      (2) 'Lending institution' means any domestic institution 
  1-24      that accepts deposits from the public and lends money, 
  1-25      including banks and savings and loan associations. 
 
  1-26    (b) A No lending institution, bank holding company, or any 
  1-27    subsidiary or affiliate of either of the foregoing doing 
  1-28    business in this state, or any officer or employee of any 
  1-29    of the foregoing, not including any director may directly 
  1-30    or indirectly be licensed to sell insurance, including but 
  1-31    not limited to credit insurance, in any municipality 
  1-32    within this state which has a population which exceeds 
  1-33    5,000, according to the latest United States decennial 
 
 
                                 -1- 
 
 
 
  2- 1    census, except that a lending institution, bank holding 
  2- 2    company, or any subsidiary or affiliate thereof and may 
  2- 3    engage in underwriting and act as an underwriter for 
  2- 4    credit life insurance and credit accident and sickness 
  2- 5    insurance, and except that an officer or employee of a 
  2- 6    lending institution, bank holding company, subsidiary, or 
  2- 7    affiliate of such institution or company may be licensed 
  2- 8    to sell single interest insurance, credit insurance, 
  2- 9    nonrecording insurance, mortgagee title insurance, credit 
  2-10    life and accident and sickness insurance and the 
  2-11    institutions, holding company, subsidiary, or affiliate 
  2-12    may receive commissions on sales of the kinds of insurance 
  2-13    written by the officers or employees subject to the 
  2-14    provisions of this title and in conformity with rules and 
  2-15    regulations promulgated by the Commissioner of Insurance.  
 
  2-16    (c) Any person holding a license on March 28, 1974, and 
  2-17    disqualified thereby shall have his license reissued upon 
  2-18    request upon becoming eligible for a license to issue 
  2-19    without the necessity of taking or passing any 
  2-20    examination. Application shall be made within 60 days from 
  2-21    the date the applicant shall again become eligible.  
 
  2-22    (d) The Commissioner of Insurance is authorized to 
  2-23    promulgate rules and regulations in order to effectuate 
  2-24    the purposes of this Code section, which are to assist in 
  2-25    the maintenance of the separation between lending 
  2-26    institutions and the insurance business and to minimize 
  2-27    the possibilities of unfair competitive practices by 
  2-28    lending institutions, agents, and brokers. 
 
  2-29    (e)(c) Nothing in this chapter shall prohibit the purchase 
  2-30    of mortgage guaranty insurance, also called credit 
  2-31    casualty loss insurance, by a lending institution from a 
  2-32    mortgage guaranty insurance company directly or 
  2-33    indirectly. 
 
  2-34    (d) No lending institution, bank holding company, or any 
  2-35    subsidiary or affiliate of any of the foregoing doing 
  2-36    business in this state that was not in the business of 
  2-37    selling title insurance on or before April 1, 2000, shall 
  2-38    be permitted to sell title insurance.  
 
  2-39    (f) Nothing contained within this Code section shall apply 
  2-40    to any lending institution, bank holding company, nor to 
  2-41    any organization which was a subsidiary or affiliate of 
  2-42    either of the foregoing on January 1, 1974, nor to any 
  2-43    officer or employee of the foregoing, if, on  January 1, 
 
 
 
                                 -2- 
 
 
 
  3- 1    1974, such lendinginstitution, bank holding company, 
  3- 2    subsidiary or affiliate, officer, or employee was licensed 
  3- 3    to operate and was conducting business in conformity with 
  3- 4    all federal and state laws applicable thereto, and all 
  3- 5    federal and state rules and regulations applicable thereto 
  3- 6    and who have since January 1, 1974, been in continuous 
  3- 7    operation." 
 
  3- 8                           SECTION 2. 
 
  3- 9  All laws and parts of laws in conflict with this Act are 
  3-10  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -3-