07
LC 37 0326
House
Bill 673
By:
Representative Hembree of the
67th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 33-7-11.1 of the Official Code of Georgia Annotated, relating
to the commencement of liability of insurer to pay benefits to a third party on
behalf of the insured, so as to provide for a third party´s lienholder to
be included on any settlement draft or payment; to provide for applicability; to
provide for related matters; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 33-7-11.1 of the Official Code of Georgia Annotated, relating to the
commencement of liability of insurer to pay benefits to a third party on behalf
of the insured,
is amended by revising subsection (b) and adding a new subsection as follows:
is amended by revising subsection (b) and adding a new subsection as follows:
"(b)
Any insurer, upon acceptance of liability, pursuant to any automobile liability
or motor vehicle liability insurance policy, shall pay reasonable benefits for
losses, including total losses, to a third party
and when there
is actual or constructive notice of a third-party lienholder to the
lienholder on behalf of an insured for
loss of use and towing and storage costs of such a motor vehicle, and the
liability of the insurer for payment of benefits for losses, including total
losses, to the third party
and
lienholder shall commence as of the time
of the incident or occurrence which results in such losses; provided, however,
in no event shall this Code section be construed so as to relieve the claimant
of his or her obligation to mitigate his or her losses or to require the payment
of loss of use and towing and storage costs benefits in an amount which is
greater than the actual losses suffered."
"(d)
The provisions of this Code section shall be applicable to all automobile
liability or motor vehicle liability insurance policies that pay benefits to a
third party and such party´s lienholder when the insurer has actual or
constructive notice thereof issued, delivered, or renewed in this state on or
after July 1, 2007."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.