LC 28 3175
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating
to selling and other trade practices, so as to provide that persons entering
into motor vehicle leases which contain a requirement that the person shall
maintain certain levels of insurance coverage on such vehicle during the lease
shall receive notice of such requirements prior to executing the lease
documents; to provide for the language of such notice; to provide for
consequences of failing to provide such notice; to provide a definition; 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
1 of Title 10 of the Official Code of Georgia Annotated, relating to selling and
other trade practices, is amended by adding a new Article 2A to read as
follows:
"ARTICLE
2A
10-1-45.
(a)
As used in this article, the term:
(1)
'Motor vehicle' means any device or vehicle including automobiles, motorcycles,
motor trucks, trailers, and all other vehicles operated over the public highways
and streets of this state and propelled by power other than muscular power, but
does not include traction engines, road rollers, implements of husbandry and
other agricultural equipment, and such vehicles as run only upon a
track.
(2)
'Motor vehicle lease contract' means an agreement between a lessor and a lessee
whereby the lessee obtains the possession and use of a motor vehicle for such
period of time, for such purposes, and for such consideration as set forth in
the agreement.
(b)
Prior to executing a motor vehicle lease contract that contains any requirement
that the lessee shall maintain certain levels of insurance coverage and
deductible limits on such vehicle during the lease term, the lessor shall
provide such lessee with a separate written notice in the form prescribed in
this article which shall be printed in at least 12 point type. The lessee shall
acknowledge receipt of the notice by signing the notice. The lessor shall
maintain a copy of such signed notice and acknowledgment and shall provide the
lessee with a copy of such signed notice and acknowledgment.
(c)
Failure to provide such notice and to obtain an acknowledgment of such notice
from the lessee shall result in any provision of the motor vehicle lease
contract concerning insurance coverage and deductible limits being unenforceable
by the lessor against the lessee.
(d)
The notice required by this Code section shall be in substantially the following
form:
'NOTICE
OF REQUIREMENT OF INSURANCE
You
are about to enter into a contract for the lease of a motor vehicle which
contains a requirement that you maintain certain insurance and deductible limits
on such motor vehicle during the term of such lease. Specifically, you will be
required to maintain insurance coverage on the motor vehicle which provides, at
a minimum, the following coverages and maximum deductible limits:
(Describe
the required motor vehicle insurance requirements including minimum coverages
and any limits on the amount of the deductibles under such
coverages.)
You
will have to provide this insurance coverage with the specified deductible
limits, if any, and pay the premiums for such coverage. These requirements may
be different from the motor vehicle insurance coverage that you presently have
or previously had on your motor vehicles and consequently may cost more than
your current or previous coverages. You may desire to consult with your
insurance agent on what these costs may be prior to executing the motor vehicle
lease contract to ensure that you fully understand the costs in leasing the
motor vehicle.
I
hereby acknowledge receipt of this notice. This _____ day of __________,
______.
_____________________________________
Lessee'"
Lessee'"
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.