07 LC 28
3269
House
Bill 583
By:
Representative Heard of the
104th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 33-7-15 of the Official Code of Georgia Annotated, relating
to cooperation by insured with insurer in connection with the defense of an
action or threatened action under a policy, so as to require that insureds send
notice of legal actions to their insurers; to provide for method of providing
such notice; to provide for the effect of failure to provide such notice; to
provide for related matters; to provide for applicability; to repeal conflicting
laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 33-7-15 of the Official Code of Georgia Annotated, relating to
cooperation by insured with insurer in connection with the defense of an action
or threatened action under a policy, is amended by revising the Code section as
follows:
"33-7-15.
(a)
No motor
vehicle liability insurance policy
covering a
motor vehicle principally garaged or principally used in this
state shall be issued, delivered or issued
for delivery, or renewed in this state unless such policy contains provisions or
has an endorsement thereto which specifically requires the insured to send his
or
her insurer
at the address
of the insurer´s registered agent for service as shown by the records of
the Secretary of State or to the
Commissioner, as soon as practicable after
the receipt thereof, a copy of every summons or other process relating to the
coverage under the policy and to cooperate otherwise with the insurer in
connection with the defense of any action or threatened action covered under the
policy.
(b)
Noncompliance by the insured with this required provision or endorsement shall
constitute a breach of
such provision
or endorsement and shall constitute a breach
of the insurance contract which, if
prejudicial to the insurer, shall relieve the insurer
and its
agents of
its
their
obligation to defend
its
their
insureds under the policy and of any liability
of the insurer
or its agents to pay any judgment or other
sum to the
insureds or on behalf of its
insureds.
(b.1)
In the event the insurer denies coverage and it is determined by declaratory
judgment or other civil process that there is in fact coverage, the insurer
shall be liable to the insured for legal cost and attorney´s fees as may be
awarded by the court.
(c)
Subsections (a) and (b) of this Code section shall not operate to deny coverage
for failure to send a copy of a summons or other process relating to policy
coverage if such documents are sent by a third party to the insurer
or to the
insurer´s agent
at the address
of the insurer´s registered agent for service as shown by the records of
the Secretary of State or to the
Commissioner by certified mail or
statutory overnight delivery within ten days of the filing of such documents
with the clerk of the court. If the name of the insurer
or the
insurer´s agent is unknown, the third
party shall have a period of 30 days from the date the insurer
or
agent becomes known in which to send these
required documents. Such documents must be sent to the insurer
or
agent
at the address
of the insurer´s registered agent for service as shown by the records of
the Secretary of State or to the Commissioner by certified mail or statutory
overnight delivery at least 30 days prior
to the entry of any judgment against the insured."
SECTION
2.
This
Act shall become effective on July 1, 2007, and shall apply to all policies
issued, delivered or issued for delivery, or renewed in this state on and after
such date.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.