06 LC 18
5113S
The
Senate Insurance and Labor Committee offered the following substitute to HB
425:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 33 of the Official Code of Georgia Annotated, relating to insurance,
so as to permit insurers to provide food or refreshments under certain
circumstances to current or prospective clients during sales presentations and
seminars provided that no insurance or annuity applications or contracts are
offered or accepted at such presentations or seminars; to provide for related
matters; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
33 of the Official Code of Georgia Annotated, relating to insurance, is amended
by striking subparagraph (b)(8)(C) of Code Section 33-6-4, relating to unfair
methods of competition and unfair or deceptive acts or practices, and inserting
in lieu thereof a new subparagraph (b)(8)(C) to read as follows:
"(C)
Nothing in subparagraphs (A) and (B) of this paragraph shall be construed as
including within the definition of discrimination or rebates any of the
following practices:
(i)
In the case of any contract of life insurance or life annuity, paying bonuses to
policyholders or otherwise abating their premiums in whole or in part out of
surplus accumulated from nonparticipating insurance, provided that any bonuses
or abatement of premiums shall be fair and equitable to policyholders and for
the best interest of the company and its policyholders;
(ii)
In the case of life or accident and sickness insurance policies issued on the
industrial debit or weekly premium plan, making allowance in an amount which
fairly represents the saving in collection expense to policyholders who have
continuously for a specified period made premium payments directly to an office
of the insurer;
(iii)
Making a readjustment of the rate of premium for a policy based on the loss or
expense experienced at the end of the first or any subsequent policy year of
insurance thereunder, which adjustment may be made retroactive only for the
policy year;
(iv)
Issuing life or accident and sickness insurance policies covering bona fide
employees of the insurer at a rate less than the rate charged other persons in
the same class;
(v)
Issuing life or accident and sickness policies on a salary-saving, payroll
deduction, preauthorized, postdated, automatic check, or draft plan at a reduced
rate commensurate with the savings made by the use of such plan;
(vi)
Paying commissions or other compensation to duly licensed agents or brokers or
allowing or returning dividends, savings, or unabsorbed premium deposits to
participating policyholders, members, or subscribers;
(vii)
Paying by an insurance agent of part or all of the commissions on public
insurance to a nonprofit association of insurance agents which is affiliated
with a recognized state or national insurance
agentś
association, which commissions are to be used in whole or in part for one or
more civic enterprises;
(viii)
Paying for food or refreshments by an insurer or an agent, broker, or employee
of an insurer for current or prospective clients during
group
sales presentations and
group
seminars provided that no insurance or annuity applications or contracts are
offered or accepted at such presentations or seminars;
or
(ix)
Paying for business meals and entertainment by an insurer or an agent, broker,
or employee of an insurer, agent, or broker for current or prospective
clients;"
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.