06 LC 37
0166S
The
Senate Insurance and Labor Committee offered the following substitute to HB
1456:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 29 of Title 33 of the Official Code of Georgia Annotated, relating
to individual accident and sickness insurance, so as to provide an exception for
certain matters concerning renewability of individual accident and sickness
policies; to provide for the Commissioner to promulgate rules and regulations;
to provide availability of an accident and sickness policy upon termination of
dependent coverage based on the age of the dependent; 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
29 of Title 33 of the Official Code of Georgia Annotated, relating to individual
accident and sickness insurance, is amended by striking Code Section 33-29-9,
relating to requirements as to references in policies to noncancelable nature or
guaranteed renewability nature of individual accident and sickness insurance,
and inserting in its place a new Code section to read as follows:
"33-29-9.
(a)
No policy of accident or sickness insurance shall refer to its noncancelable
nature without at the same time disclosing all options the insurer may have in
regard to renewability; and the guaranteed renewable nature of any such policy
shall not be referred to unless the reference at the same time discloses the
qualifications on the guarantee of renewability, including any age limits, any
right to change premium rates by class, any aggregate provisions, and any other
limitations on the right to renewal in a manner which shall not minimize or
render obscure the qualifying conditions.
(b)
An insurer operating in the major medical or comprehensive, guaranteed renewable
business in the State of Georgia shall permit an insured to change his or her
major
medical or
comprehensive coverage, upon election at any renewal, to a comparable product
currently offered by that insurer or a product currently offered by that insurer
with more limited product benefits; to a product with higher deductibles; or to
modify his or her existing coverage to elect any optional higher deductibles
under that policy. If such product, benefit, or deductible change is elected by
the insured during the 60 day required period after notice of renewal premium
increase but before renewal date, such insured shall not be subject to any new
preexisting conditions exclusion that did not apply to his or her original
coverage.
(c)
The Commissioner shall adopt such rules and regulations as he or she deems
necessary for the administration of this Code
section."
SECTION
2.
Said
chapter is further amended by adding a new Code Section 33-29-21.1 to read as
follows:
"33-29-21.1.
Every
policy which contains a provision for termination of coverage of a dependent
upon the reaching of a certain age shall contain a provision to the effect that,
upon the date of the dependent reaching the age at which coverage would
terminate under the provisions of the policy, the dependent shall be entitled to
have issued to him or her, without evidence of insurability, upon application
made to the company within 31 days following the date the dependent reaches the
age at which coverage would terminate and upon the payment of the appropriate
premium, an individual or family policy of accident and sickness insurance then
being issued by the insurer which provides coverage most nearly similar to the
coverage contained in the policy which was terminated by reason of dependent
reaching a certain age or any similar individual or family policy then being
issued by the insurer which contains lesser coverage. Any and all probationary
or waiting periods set forth in such an individual or family policy shall be
considered as being met to the extent coverage was in force under the prior
policy."
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.