05 LC 28
2165
House
Bill 375
By:
Representatives Parsons of the
42nd,
Ehrhart of the
36th,
Harbin of the
118th,
Burkhalter of the
50th,
and Coleman of the
144th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 35 of Title 33 of the Official Code of Georgia Annotated, relating
to prepaid legal services plans, so as to provide for legislative findings and
intent; to provide definitions; to provide for registration and bonding; to
provide for the appointment of salespersons as company representatives; to
provide for certain filings and annual registration; to provide for prior
approval of contracts; to require certain forms to be provided; to provide for
the handling of complaints; to provide for sanctions; to authorize the
promulgation of rules and regulations; to provide for applicability; to provide
for exceptions; 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
35 of Title 33 of the Official Code of Georgia Annotated, relating to prepaid
legal services plans, is amended by striking the chapter in its entirety and
inserting in lieu thereof a new Chapter 35 to read as follows:
"Chapter
35
33-35-1.
The
General Assembly finds that the previous law concerning prepaid legal services
plans has served neither to promote access to quality legal services at the
lowest possible price nor to regulate the development and operation of legal
services contract plans in that virtually no new legal services plans have been
created in the State of Georgia since the enactment of the previous law. The
General Assembly further finds that new encouragement is needed to promote
competition and innovation among providers of these types of plans to facilitate
the delivery of affordable quality legal services to the citizens of Georgia.
Because of the interest of the state in developing the foregoing, use of the
statés
powers is necessary to foster these developments.
33-35-2.
As
used in this chapter, the term:
(1)
'Commissioner' means the Commissioner of Insurance.
(2)
'Legal services contract company' means a person or entity offering legal
services contracts to the general public or a segment of the general
public.
(3)
'Legal services contract' means a contract provided by companies licensed under
the provisions of this chapter that provides for legal services or reimbursement
for legal services provided by an individual licensed or admitted to practice
law in the jurisdiction in which the services are to be rendered and which are
provided for a predetermined, specific, periodic fee. However, legal services
contracts shall not be considered insurance as defined in paragraph (2) of Code
Section 33-1-2 nor shall legal services contract companies be deemed to be
insurers as defined in paragraph (4) of Code Section 33-1-2.
33-35-3.
Before
commencing business in this state, regardless of the means of doing business,
any legal services contract company must register with the Commissioner on a
form prescribed by the Commissioner. The form must be accompanied by a bond or
letter of credit acceptable to the Commissioner in the amount of $50,000.00,
which must remain in force so long as the legal services contract company does
business in Georgia. The amount of the bond or letter of credit may be
increased only by statute.
33-35-4.
Before
any sales or solicitation activity commences, a person seeking to be involved
with any direct selling or direct in-person or electronic solicitation of the
general public or segments of the general public on behalf of a legal services
contract company must be appointed as a representative of such legal services
contract company by filing with the Commissioner on a form prescribed by the
Commissioner the
appointeés
name, address, and telephone number. Such appointment must be renewed each year
no later than October 1. The Commissioner may collect a fee of $20.00 with
each initial or renewal filing to offset the costs of administering and
enforcing this chapter. Appointment may be refused or revoked upon a finding
that a representative or a prospective representative has been convicted of a
crime of deceit or dishonesty within the previous ten years.
33-35-5.
(a)
No later than March 1 of each year, commencing immediately after registration as
required by Code Section 33-35-3, a legal services contract company registered
with the Commissioner must file on a form prescribed by the Commissioner an
updated registration statement to include a sworn affirmation as to the
continuation of the bond or letter of credit required by Code Section
33-35-3.
(b)
In connection with its annual registration, the legal services contract company
must pay a registration fee of $500.00 for the purposes of administering this
chapter.
33-35-6.
Contracts
offering legal services must be filed with the Commissioner for approval prior
to being offered to the general public or a segment of the general public.
However, approval must not be withheld unless the contract is false, misleading,
unfair, deceptive, or is in violation of this chapter or other applicable law.
Contracts filed are deemed approved if the Commissioner does not notify the
legal services contract company of its disapproval within 45 days of receipt of
the contract by the Commissioner.
33-35-7.
This
chapter shall not apply to the benefits available under automobile club
membership contracts and automobile liability insurance policies that supply
limited legal services or reimbursement for legal services in automobile related
matters under certificates of authority issued by the Commissioner, to any legal
aid or other legal services program for the indigent, or to any
employer-employee legal services plan that is excluded from this chapter by the
federal Employee Retirement Income Security Act of 1974.
33-35-8.
(a)
Nothing contained in this chapter shall be deemed to prohibit an insurer
authorized to transact casualty, life, or accident and sickness insurance in
this state from selling or offering for sale in this state individually
underwritten and individually issued policies of legal services contracts on
policy forms that have been approved by the Commissioner pursuant to Chapter 6
of this title.
(b)
This chapter shall not apply to any legal services contracts negotiated and
issued in accordance with Section 302C of the Labor Management Relations Act of
1947 (87 Stat. 314, 29 U.S.C. Section 186(c)(8)).
33-35-9.
All
forms and applications contemplated or required by this chapter must be
available to the general public within 30 days after the effective date of this
chapter.
33-35-10.
A
consumer aggrieved by a legal services contract company may file a complaint
with the Commissioner, who shall review the complaint, investigate it as the
Commissioner considers appropriate, and initiate action as authorized by
law.
33-35-11.
A
legal services contract company that violates this chapter shall be subject to
either or both of the following:
(1)
An administrative order to cease and desist violations of this chapter;
or
(2)
Revocation or denial of registration.
33-35-12.
The
Commissioner is authorized to promulgate rules and regulations as necessary to
implement the provisions of this
chapter."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.