05 LC
25 4089
House
Bill 843
By:
Representatives Benfield of the
85th,
Drenner of the
86th,
and Gardner of the
57th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
provide for mile-based premiums for certain motor vehicle insurance; to amend
Chapter 34 of Title 33 of the Official Code of Georgia Annotated, relating to
motor vehicle accident reparations, so as to change certain provisions relating
to requirements for issuance of motor vehicle liability insurance policies; to
change certain provisions relating to rules and regulations; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
34 of Title 33 of the Official Code of Georgia Annotated, relating to motor
vehicle accident reparations, is amended by striking subsection (a) of Code
Section 33-34-3, relating to requirements for issuance of motor vehicle
liability insurance policies, and inserting in lieu thereof the
following:
"(a)(1)
As used in
this subsection, the term:
(A)
'Mile based' means based on a rate, rating plan, rating system, or underwriting
rule for which a unit of exposure is one mile traveled by the insured motor
vehicle.
(B)
'Time based' means based on a rate, rating plan, rating system, or underwriting
rule for which a unit of exposure is a unit of time.
(2)
All policies of motor vehicle liability insurance issued in this state must be
in accordance with the requirements of this chapter. Such policies shall contain
at least the minimum coverages required under this chapter and shall be issued
for a minimum term of six months.
(3)(A)
Any insurer that issues motor vehicle liability insurance policies subject to
the requirements of this chapter may offer each person who purchases such
insurance a choice between premiums which are either time based or mile
based.
(B)
Each insurer which offers such a choice may require a person purchasing motor
vehicle liability insurance from such insurer to make the type of premiums
selected by the purchaser, either time based or mile based, applicable to all
vehicles covered under any policy issued by such insurer.
(C)
Premium rates, rating plans, rating systems, or underwriting rules for
time-based premiums and mile-based premiums shall be filed separately for
purposes of Code Section 33-9-21. Any insurer that offers a choice of
mile-based premiums for motor vehicle liability insurance pursuant to this
paragraph shall, whenever making a filing for such premiums as required by Code
Section 33-9-21, include as part of such filing a statement of any fee to be
charged to policyholders or applicants for participation in the mile-based
premium plan.
(D)
In reporting earned premiums and incurred claims as required under subsection
(c) of Code Section 33-3-21.1, an insurer shall separately report experience
based on use of time-based and mile-based premiums for motor vehicle liability
insurance if the insurer offers a choice of such premiums pursuant to this
paragraph.
(E)
The Commissioner shall annually:
(i)
Compile information regarding:
(I)
The number of insurers issuing in this state motor vehicle liability insurance
policies using mile-based premium plans;
(II)
The geographic areas of this state in which mile-based premium plans are used;
and
(III)
The premium rates for mile-based premium plans as compared to time-based premium
plans; and
(ii)
Analyze the effect of mile-based premium plans on premium rates offered for
motor vehicle liability insurance using time-based premium plans.
(2)(4)
All insurers authorized to transact or transacting insurance in this state or
controlling or controlled by or under common control by or with an insurer
authorized to transact or transacting insurance in this state which issue
policies or contracts providing motor vehicle liability insurance coverage or
any other similar coverage in any state or Canadian province shall include in
the policies or contracts of insurance a provision which provides at least the
minimum liability coverage required under Code Section 33-34-4 with respect to
motorists insured under the policies or contracts who are involved in motor
vehicle accidents in this state and, notwithstanding any provisions of the
policies or contracts to the contrary, all such policies or contracts of
insurance shall be deemed to satisfy the minimum requirements of this chapter if
a motorist insured under the policies or contracts of insurance is involved in a
motor vehicle accident in this state.
(3)(5)
Nothing contained in this Code section shall be deemed to prohibit a nonadmitted
insurer not otherwise required by paragraph
(2)(4)
of this subsection to provide the minimum liability coverage required by Code
Section 33-34-4 from providing such coverage for its insured motorists who are
involved in motor vehicle accidents in this state and, to the extent that such
coverage is provided, such policies or contracts shall be deemed to provide the
minimum liability coverage required by this chapter.
(4)(6)(A)
No insurer shall issue a policy of motor vehicle liability insurance without
requiring advance payment for the first 30 days of coverage
if the
premiums are time based or the first 2,000 miles of coverage if the premiums are
mile based. Insurers may rely on the
insured́s
statements in the policy application for the purpose of calculating the initial
payment required by this paragraph. This paragraph shall not apply to any
renewal or continuation of a policy, to any replacement of a policy where there
is no lapse of coverage, or to any personal automobile policy issued in
connection with an employer sponsored payroll deduction plan. This paragraph
shall apply only to personal automobile or family-type automobile liability
insurance policies.
(B)
If an insurer, agent, or premium finance company collects such advance payment
in the form of a check or money order which is not honored upon initial
presentation, such insurer, agent, or premium finance company shall be deemed to
have complied with subparagraph (A) of this paragraph and may, thereafter,
cancel for nonpayment of premium as provided in Code Section
33-24-44."
SECTION
2.
Said
chapter is further amended by designating the existing provisions of Code
Section 33-34-8, relating to rules and regulations, as subsection (a) thereof
and adding a new subsection (b) to read as follows:
"(b)
The Commissioner shall promulgate such rules or regulations as are reasonably
necessary to govern the use of mile-based premiums for motor vehicle liability
insurance offered pursuant to paragraph (3) of subsection (a) of Code Section
33-34-3, including without limitation provisions for auditing motor vehicle
odometers to determine whether the minimum coverage required under this chapter
is in
force."
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.