08
SB113/AP
Senate
Bill 113
By:
Senators Shafer of the 48th, Hudgens of the 47th and Moody of the 56th
AS
PASSED
AN
ACT
To
amend Article 1 of Chapter 23 of Title 33 of the Official Code of Georgia
Annotated, relating to agents, agencies, subagents, counselors, and adjusters,
so as to provide for background checks; to provide definitions; to require
appointment of an agent by an authorized insurer before licensing; to provide
for forms for license applications; to provide for appointment of limited
subagents; to prohibit agents whose licenses are inactive from selling,
soliciting, or negotiating insurance; to provide for rules and regulations for
certain adjusters; to provide for limited licenses for retail vendors of
communications equipment to offer or sell insurance policies covering certain
risks for communications equipment; to conform certain terms; to provide for
related matters; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
1 of Chapter 23 of Title 33 of the Official Code of Georgia Annotated, relating
to agents, agencies, subagents, counselors, and adjusters, is amended by
revising subsection (a) of Code Section 33-23-1, relating to definitions, by
adding a new paragraph to read as follows:
"(10.1)
'Limited subagent' means an individual licensed on behalf of a licensed agent
pursuant to Code Section 33-23-12."
SECTION
2.
Said
article is further amended by revising subsections (c), (d), and (e) of Code
Section 33-23-4, relating to license requirements, as follows:
"(c)
An insurer may pay a commission or other valuable consideration to a licensed
insurance agency in which all employees, stockholders, directors, or officers
who sell, solicit, or negotiate insurance contracts are qualified insurance
agents, limited subagents, or counselors holding currently valid licenses as
required by the laws of this state; and an agent, limited subagent, or counselor
may share any commission or other valuable consideration with such a licensed
insurance agency.
(d)
No person other than a duly licensed adjuster, agent, limited subagent, or
counselor shall pay or accept any commission or other valuable consideration
except as provided in subsections (b) and (c) of this Code section.
(e)
This Code section shall not prevent the payment or receipt of renewal or
deferred commissions by any agency or a person on the grounds that the licensee
has ceased to be an agent, limited subagent, or counselor nor prevent the
receipt or payment of any commission by an individual who has been issued a
temporary license pursuant to this chapter."
SECTION
3.
Said
article is further amended by revising Code Section 33-23-5, relating to
qualifications and requirements for license, as follows:
"33-23-5.
(a)
For the protection of the people of this state, the Commissioner shall not
issue, continue, or permit to exist any license, except in compliance with this
chapter and except as provided in Code Sections 33-23-3, 33-23-4, 33-23-12,
33-23-13, 33-23-14, 33-23-16, 33-23-17, 33-23-29, 33-23-29.1, and 33-23-37. The
Commissioner shall not issue a license to any individual applicant for a license
who does not meet or conform to qualifications or requirements set forth in
paragraphs (1) through (8) of this subsection:
(1)
The individual applicant shall be a resident of this state who shall reside and
be present within this state for at least six months of every year or an
individual whose principal place of business is within this state; provided,
however, that in cities, towns, or trade areas, either unincorporated or
composed of two or more incorporated cities or towns, located partly within and
partly outside this state, requirements as to residence and principal place of
business shall be deemed met if the residence or place of business is located in
any part of the city, town, or trade area and if the other state in which the
city, town, or trade area is located in part has established like requirements
as to residence and place of business. The individual applying for an agent,
adjuster, or counselor license shall be at least 18 years of age;
(2)
If applying for an agent´s license for property and casualty insurance, the
applicant shall not use or intend to use such license for the purpose of
obtaining a rebate or commission upon controlled business; and the applicant
shall not in any calendar year effect controlled business that will aggregate as
much as 25 percent of the volume of insurance effected by such applicant during
such year, as measured by the comparative amounts of premiums;
(3)
If applying for an agent´s license, the applicant shall be appointed an
agent by an authorized insurer prior to issuance of the license;
(4)
The individual applicant shall be of good character;
(5)
The individual applicant shall pass any written examination required for the
license by this article, provided that:
(A)
An individual who applies for an insurance agent´s license in this state
who was previously licensed for the same lines of authority in another state
shall not be required to complete any prelicensing education or examination.
This exemption shall only be available if the individual is currently licensed
in that state or if the application is received within 90 days of the
cancellation of the applicant´s previous license and if the prior state
issues a certification that, at the time of cancellation, the applicant was in
good standing in that state or the state´s producer data base records
maintained by the National Association of Insurance Commissioners, its
affiliates, or subsidiaries indicate that the agent is or was licensed in good
standing for the line of authority requested; and
(B)
An individual licensed as an insurance agent in another state who moves to this
state shall make application within 90 days of establishing legal residence to
become a resident licensee pursuant to Code Section 33-23-8. No prelicensing
education or examination shall be required of that individual to obtain a
license for any line of authority previously held in the prior state except
where the Commissioner determines otherwise by rule or regulation;
(6)
If applying for a license as counselor, the applicant shall show that he or she
either has had five years´ experience as an agent, subagent, or adjuster or
in some other phase of the insurance business or has sufficient teaching or
educational qualifications or experience which, in the opinion of the
Commissioner, has qualified the applicant to act as such counselor; and the
applicant shall pass such examination as shall be required by the Commissioner
unless such applicant is exempted by the Commissioner, based on the
applicant´s experience and qualifications and pursuant to a regulation
adopted by the Commissioner;
(7)
If applying for an agent´s license, limited subagent´s license, or
adjuster´s license, no applicant shall be qualified therefor or be so
licensed unless he or she has successfully completed classroom courses in
insurance satisfactory to the Commissioner at a school which has been approved
by the Commissioner; and
(8)
The Commissioner shall by rule or regulation establish criteria and procedures
for the scope of prelicensing requirements and exemptions, if any, to the
prelicensing or examination requirements.
(b)
An individual who was licensed as an agent, counselor, limited subagent, surplus
line broker, or adjuster at the time such individual was employed by the
Commissioner and who while so employed was employed in responsible insurance
duties as a full-time bona fide employee shall be permitted to reinstate his or
her license upon termination of employment if written request is made within 90
days after the date of termination of employment with the
Commissioner.
(c)
Active licensees who apply for additional licenses and individuals who apply for
the reinstatement of a license prior to six months from the license expiration
date shall not be required to submit fingerprints pursuant to Code Section
33-23-5.1."
SECTION
4.
Said
article is further amended by adding a new Code section to read as
follows:
"33-23-5.1.
(a)
As used in this Code section, the term 'conviction data' means a record of a
finding or verdict of guilty or plea of guilty or nolo contendere with regard to
any crime regardless of whether an appeal of the conviction has been
sought.
(b)
With respect to the requirements of paragraph (4) of subsection (a) of Code
Section 33-23-5, the Commissioner shall be authorized to obtain conviction
data with respect to an applicant as authorized in this Code section. The
Commissioner shall submit to the Georgia Crime Information Center two complete
sets of fingerprints of the applicant for appointment or employment, the
required records search fees, and such other information as may be required.
Upon receipt of such material, the Georgia Crime Information Center shall
promptly forward one set of fingerprints to the Federal Bureau of Investigation
for a search of bureau records and the preparation of an appropriate report
concerning such records search and shall retain the other set and promptly
conduct a search of its own records and all records to which the center has
access. The Georgia Crime Information Center shall notify the Commissioner in
writing of any derogatory finding, including, but not limited to, any conviction
data regarding the fingerprint records check or if there is no such finding.
All conviction data received by the Commissioner shall not be a public record,
shall be privileged, and shall not be disclosed to any other person or agency
except as provided in this Code section and except to any person or agency that
otherwise has a legal right to inspect the employment file. All such records
shall be maintained by the Commissioner pursuant to the laws regarding such
records and the rules and regulations of the Federal Bureau of Investigation and
the Georgia Crime Information Center, as applicable."
SECTION
5.
Said
article is further amended by revising Code Section 33-23-8, relating to form
and contents of license application, as follows:
"33-23-8.
(a)
An individual applicant for any license required by this chapter shall file with
the Commissioner an application upon forms prescribed by the Commissioner.
(b)
If the application is for an agent´s or limited subagent´s license,
the application shall state the kinds of insurance proposed to be transacted.
If applying as a limited subagent, the applicant shall be appointed as a limited
subagent by a sponsoring agent prior to the issuance of such
license.
(c)
As to any application for a limited subagent´s license or certificate of
authority, the Commissioner shall require as part of the application a
certificate of the sponsoring agent proposed to be represented. The certificate
shall state, relative to the applicant´s character, including criminal
background, identity, residence, experience, and instruction as to the kinds of
insurance to be transacted, that the sponsoring agent is satisfied that the
applicant is trustworthy and qualified to act as its limited subagent and to
hold himself or herself out in good faith to the general public as a limited
subagent and the fact that the sponsoring agent desires that the applicant be
licensed as a limited subagent to represent it in this state.
(d)
Each applicant for an agency license shall file with the Commissioner the
information required under Code Section 33-23-3.
(e)
All such applications shall be accompanied by the appropriate fees in the
respective amounts as provided by law."
SECTION
6.
Said
article is further amended by revising subsections (a) and (c) of Code Section
33-23-10, relating to examination of applicants, as follows:
"(a)
Each individual applicant for a license as agent, limited subagent, counselor,
adjuster, or surplus line broker shall submit to a personal examination in
writing as to his or her competence to act in such capacity. The examination
shall be prepared and given by the Commissioner or a designee of the
Commissioner and shall be given and graded in a fair and impartial manner and
without unfair discrimination as between individuals examined. Any required
examination may be supplemented by an oral examination at the discretion of the
Commissioner. The Commissioner shall provide by rule or regulation for a
reasonable waiting period before giving a reexamination to an applicant who
failed to pass a previous similar examination."
"(c)
An applicant for a license to act as an agent, limited subagent, surplus line
broker, counselor, or adjuster who held a valid license to act as such which
lapsed while the applicant was a member of any branch of the armed forces of the
United States shall be granted a new license if application is made within a
period of five years from the date of the expiration of the old license and
proof satisfactory to the Commissioner is furnished that:
(1)
The individual was a member of the armed forces of the United States at the time
the previous license lapsed; and
(2)
The individual´s service in the armed forces of the United States was not
terminated more than one year prior to the date of application for a new
license."
SECTION
7.
Said
article is further amended by revising subsections (c) and (d) of Code Section
33-23-12, relating to limited licenses, as follows:
"(c)(1)
As used in this subsection, the term:
(A)
'Limited licensee' means a person or entity authorized to sell certain coverages
relating to the rental of vehicles pursuant to the provisions of this
subsection.
(B)
'Rental agreement' means any written agreement setting forth the terms and
conditions governing the use of a vehicle provided by the rental company for
rental or lease.
(C)
'Rental company' means any person or entity in the business of providing
primarily private passenger vehicles to the public under a rental agreement for
a period not to exceed 90 days.
(D)
'Rental period' means the term of the rental agreement.
(E)
'Renter' means any person obtaining the use of a vehicle from a rental company
under the terms of a rental agreement for a period not to exceed 90
days.
(F)
'Vehicle' or 'rental vehicle' means a motor vehicle of the private passenger
type, including passenger vans, minivans, and sport utility vehicles, and of the
cargo type, including cargo vans, pick-up trucks, and trucks with a gross
vehicle weight of less than 26,000 pounds and which do not require the operator
to possess a commercial driver´s license.
(2)
The Commissioner may issue to a rental company that has complied with the
requirements of this subsection a limited license authorizing the limited
licensee to offer or sell insurance through a licensed insurer in connection
with the rental of vehicles.
(3)
As a prerequisite for issuance of a limited license under this subsection, there
shall be filed with the Commissioner an application for a limited license in
such form or forms, and supplements thereto, and containing such information as
the Commissioner may prescribe.
(4)
In the event that any provision of this subsection is violated by a limited
licensee, the Commissioner may:
(A)
After notice and a hearing, revoke or suspend a limited license issued under
this subsection in accordance with the provisions of Code Sections 33-23-21 and
33-23-22; or
(B)
After notice and a hearing, impose such other penalties, including suspending
the transaction of insurance at specific rental locations where violations of
this subsection have occurred, as the Commissioner deems to be necessary or
convenient to carry out the purposes of this subsection.
(5)
The rental company licensed pursuant to paragraph (2) of this subsection may
only offer or sell insurance through licensed insurers in connection with and
incidental to the rental of vehicles, whether at the rental office or by
preselection of coverage in an individual, master, corporate, or group rental
agreement, in any of the following general categories:
(A)
Personal accident insurance covering the risks of travel, including, but not
limited to, accident and health insurance that provides coverage, as applicable,
to renters and other rental vehicle occupants for accidental death or
dismemberment and reimbursement for medical expenses resulting from an accident
that occurs during the rental period;
(B)
Liability insurance, which, at the exclusive option of the rental company, may
include uninsured and underinsured motorist coverage, whether offered separately
or in combination with other liability insurance, that provides coverage, as
applicable, to renters and other authorized drivers of rental vehicles for
liability arising from the operation of the rental vehicle;
(C)
Personal effects insurance that provides coverage, as applicable, to renters and
other rental vehicle occupants for the loss of, or damage to, personal effects
that occurs during the rental period;
(D)
Roadside assistance and emergency sickness protection programs; and
(E)
Any other travel or vehicle related coverage that a rental company offers in
connection with and incidental to the rental of vehicles.
(6)
No insurance shall be offered by a limited licensee pursuant to this subsection
unless:
(A)
The rental period of the rental agreement does not exceed 90 consecutive
days;
(B)
At every rental location where rental agreements are executed, brochures or
other written materials are readily available to the prospective renter
that:
(i)
Summarize clearly and correctly the material terms of coverage offered to
renters, including the identity of the insurer;
(ii)
Disclose that such policies offered by the rental company may provide a
duplication of coverage already provided by a renter´s personal automobile
insurance policy, homeowner´s insurance policy, personal liability
insurance policy, or other source of coverage;
(iii)
State that the purchase by the renter of the kinds of coverage specified in this
subsection is not required in order to rent a vehicle; and
(iv)
Describe the process for filing a claim in the event the renter elects to
purchase coverage and in the event of a claim;
(C)
Evidence of coverage on the face of the rental agreement is disclosed to every
renter who elects to purchase such coverage.
(7)
Any limited license issued under this subsection shall also authorize any
employee of the limited licensee to act individually on behalf and under the
supervision of the limited licensee with respect to the kinds of coverage
specified in this subsection.
(8)
Each rental company licensed pursuant to this subsection shall provide a
training program in which employees being trained by a licensed instructor
receive basic insurance instruction about the kinds of coverage specified in
this subsection and offered for purchase by prospective renters of rental
vehicles. Additionally, each rental company shall provide for such employees
two hours of continuing education courses annually to be taught by a licensed
instructor. A rental company shall certify that, prior to offering such
coverages, each employee has received such instruction.
(9)
Notwithstanding any other provision of this subsection or any rule adopted by
the Commissioner, a limited licensee pursuant to this subsection shall not be
required to treat moneys collected from renters purchasing such insurance when
renting vehicles as funds received in a fiduciary capacity, provided that the
charges for coverage shall be itemized and be ancillary to a rental transaction.
The sale of insurance not in conjunction with a rental transaction shall not be
permitted.
(10)
No limited licensee under this subsection shall advertise, represent, or
otherwise hold itself or any of its employees out as licensed insurers,
insurance agents, or insurance brokers.
(d)(1)
As used in this subsection, the term 'communications equipment' means handsets,
pagers, personal digital assistants, portable computers, automatic answering
devices, cellular telephones, batteries, and other devices or their accessories
used to originate or receive communications signals or service for individual
customer use only and includes services related to the use of such devices,
including, but not limited to, individual customer access to a wireless
network.
(2)
The Commissioner may issue to a retail vendor of communications equipment that
has complied with the requirements of this subsection a limited license
authorizing the limited licensee to offer or sell insurance policies covering
only the loss, theft, mechanical failure, or malfunction of or damage to
communications equipment.
(3)
The sale of such insurance policies shall be limited to sales in connection with
the sale of or provision of service for communications equipment by the retail
vendor.
(4)
As a prerequisite for issuance of a limited license under this subsection, there
shall be filed with the Commissioner an application for such limited license or
licenses in a form and manner prescribed by the Commissioner.
(5)
Each retail vendor licensed pursuant to this subsection shall provide a training
program in which employees and authorized representatives of such retail vendor
shall be trained by a licensed instructor and receive basic insurance
instruction about the kind of coverage authorized in this subsection and offered
for purchase by prospective purchasers of communications equipment or
service.
(6)
No prelicensing examination shall be required for issuance of such
license."
SECTION
8.
Said
article is further amended by revising subsections (a) and (d) of Code Section
33-23-13, relating to temporary licenses, and by adding a new subsection (e) to
read as follows:
"(a)
In the event of the death of an agent or limited subagent, including a temporary
agent or limited subagent, or the inability to act as an agent or limited
subagent by reason of service in the armed services of the United States,
illness or other disability, or termination of appointment by the insurer, if
there is no other individual connected with the agency who is licensed as an
agent or limited subagent in regard to insurance of the classification
transacted by the agent or limited subagent deceased or unable to act, the
Commissioner may issue a temporary license as agent or limited subagent in
regard to insurance of such classification to an employee of the agency, to a
member of the family of said former agent or limited subagent, or to some
associate or to a guardian, receiver, executor, or administrator for the purpose
of continuing or winding up the business affairs of the agent, limited subagent,
or agency. A temporary license shall be issued only to an applicant who has
filed a sworn application upon forms prescribed by the Commissioner. The
applicant shall not be required to meet the requirements as to examination,
residence, and education required for licensing of agents or limited subagents
other than temporary agents. If the Commissioner deems the applicant to be
qualified for a temporary license, the Commissioner shall issue the
license."
"(d)
A temporary license issued pursuant to subsection (a) of this Code section shall
authorize the negotiation of renewal policies, the receipt and collection of
premiums, and such other acts as are necessary to the continuance of the
particular insurance business of the agent or limited subagent. The license
shall not authorize the holder thereof to sell, solicit, or negotiate new
insurance accounts.
(e)
As to any application for a temporary agent´s license pursuant to
subsection (b) of this Code section, the Commissioner shall require as part of
the application a certificate of the insurer proposed to be represented. The
certificate shall state, relative to the applicant´s character, including
criminal background, identity, residence, experience, and instruction as to the
kinds of insurance to be transacted, that the insurer is satisfied that such
applicant is trustworthy and qualified to act as its temporary agent and to hold
himself or herself out in good faith to the general public as a temporary agent
and the fact that the insurer desires that the applicant be licensed as a
temporary agent to represent it in this state."
SECTION
9.
Said
article is further amended by revising subsections (a) and (b) of Code Section
33-23-18, relating to issuance of license on continuous basis, as
follows:
"(a)
All resident agent, limited subagent, adjuster, and counselor licenses, with the
exception of temporary or probationary licenses, shall be issued on a continuous
basis.
(b)
Such resident agent, limited subagent, adjuster, and counselor licenses may be
continued upon receipt by the Commissioner of evidence of such continuing
education as the Commissioner may establish by rule or regulation and payment of
such fees as are provided by law."
SECTION
10.
Said
article is further amended by revising subsection (b) of Code Section 33-23-19,
relating to placing of license on inactive status, as follows:
"(b)
When a license is placed on inactive status under this Code section, the agent
shall be prohibited from selling, soliciting, or negotiating
insurance."
SECTION
11.
Said
article is further amended by revising subsections (a) and (c) of Code Section
33-23-20, relating to effect of license suspension or placement of license on
inactive status, as follows:
"(a)
The suspension of the license of an agent or limited subagent or the placing of
such license on inactive status shall not deprive such individual or the
executors or administrators of such individual´s estate of any right that
may have been acquired by a contract made before such suspension or placement on
inactive status to receive all or a portion of commissions upon contracts of
insurance written before such suspension or placement on inactive status with
reference to the periods of time during which such contracts are in effect,
including renewal option periods provided in the contracts."
"(c)
Nothing in this article shall be construed to permit an agent or limited
subagent whose license has been suspended or placed in inactive status to sell,
solicit, or negotiate insurance other than as expressly permitted in subsections
(a) and (b) of this Code section."
SECTION
12.
Said
article is further amended by revising subsection (a) of Code Section 33-23-23,
relating to limitation on application after refusal or revocation of license, as
follows:
"(a)
No licensee or applicant whose license or application has been refused or
revoked as provided by Code Sections 33-23-21 and 33-23-22 shall be entitled to
file another application for a license as an agent, agency, limited subagent,
surplus lines broker, counselor, or adjuster within five years from the
effective date of the refusal, revocation, or, if judicial review of such
refusal or revocation is sought, within five years from the date of the final
court order or decree affirming such refusal or revocation."
SECTION
13.
Said
article is further amended by revising Code Section 33-23-25, relating to place
of business, as follows:
"33-23-25.
Every
licensed agent, limited subagent, counselor, and adjuster shall have and
maintain in this state or, if a nonresident licensee, in the state of domicile,
a place of business accessible to the public. The place of business shall be
that wherein the licensee principally conducts transactions pursuant to the
license. The address of the place of business shall be maintained by the
Commissioner. All resident and nonresident licensees shall promptly notify the
Commissioner in writing within 30 days of any change in the business
address."
SECTION
14.
Said
article is further amended by revising Code Section 33-23-26, relating to
agent´s certificate of authority, by adding a new subsection to read as
follows:
"(i)
As to any application for an agent´s certificate of authority, the
Commissioner shall require as part of the application a certificate of the
insurer proposed to be represented. The certificate shall state, relative to
the applicant´s character, including criminal background, identity,
residence, experience, and instruction as to the kinds of insurance to be
transacted, that the insurer or sponsoring agent is satisfied that such
applicant is trustworthy and qualified to act as its agent in this
state."
SECTION
15.
Said
article is further amended by revising Code Section 33-23-28, relating to scope
of subagent´s authority, as follows:
"33-23-28.
(a)
A subagent´s certificate of authority shall not cover any kind of insurance
for which the sponsoring agent and subagent are not licensed.
(b)
A subagent or limited subagent shall not have power to bind an
insurer.
(c)
All business transacted by a subagent under such subagent´s license or
limited subagent shall be in the name of the agent by whom the subagent or
limited subagent is employed; and the agent shall be responsible for all the
acts or omissions of the subagent or limited subagent within the scope of his or
her employment.
(d)
A record of each transaction shall be maintained by both the agent and the
subagent or limited subagent."
SECTION
16.
Said
article is further amended by revising subsection (b) of Code Section 33-23-29,
relating to authority of agent to act as adjuster, as follows:
"(b)
No license by this state shall be required:
(1)
Of a nonresident independent adjuster for the adjustment in this state of a
single loss or of losses arising out of a catastrophe common to all such losses;
or
(2)
Of a nonresident adjuster who regularly adjusts in another state and who is
licensed in such other state, if such state requires a license, to act as
adjuster in this state for emergency insurance adjustment work for a period not
exceeding 60 days and performed for an employer who is an insurance adjuster
licensed by this state or who is a regular employer of one or more insurance
adjusters licensed by this state, provided that the employer shall furnish to
the Commissioner a notice in writing immediately upon the beginning of the
emergency insurance adjustment work. The Commissioner may by rule or regulation
establish criteria and procedures for adjusters operating under this Code
section."
SECTION
17.
Said
article is further amended by revising subsections (a) and (c) of Code Section
33-23-34, relating to records of transactions, as follows:
"(a)
Every agent, limited subagent, counselor, and adjuster under this chapter shall
keep at the address as shown on his or her license or at the insurer´s
regional or home office situated in this state a record of all transactions
consummated under such license. The record shall be in organized form and shall
include:
(1)
In the case of an agent or limited subagent, a record of each insurance contract
procured or issued together with the names of the insurers and insureds, the
amount of premium paid or to be paid, and a statement of the subject of the
insurance; and the names of any other licensees from whom business is accepted
and of persons to whom commissions or allowances of any kind are promised or
paid;
(2)
In the case of an adjuster, a record of each investigation or adjustment
undertaken or consummated and a statement of any fee, commission, or other
compensation received or to be received by the adjuster on account of the
investigation or adjustment; and
(3)
Such other and additional information as may be customary or as may be
reasonably required by the Commissioner."
"(c)
In the case of agents or limited subagents, the maintaining of the records
required by this Code section at the insurance agency licensed under this
chapter for which agency the transaction was undertaken shall be deemed to
comply with the requirements of subsection (a) of this Code
section."
SECTION
18.
Said
article is further amended by revising subsection (a) of Code Section 33-23-35,
relating to reporting and disposition of premiums, as follows:
"(a)
An agent, limited subagent, or any other representative of an insurer or of any
other person in the effectuation of an insurance contract shall report to the
insurer or its agent the premium for the contract and the amount shall be shown
in the contract. Each willful violation of this subsection shall constitute a
misdemeanor."
SECTION
19.
Said
article is further amended by revising subsection (a) of Code Section 33-23-38,
relating to placing insurance beyond scope of license or with nonlicensed
insurers prohibited, as follows:
"(a)
No agent or limited subagent shall place any insurance or receive any
remuneration in regard to any insurance of a classification outside the scope of
such agent´s or limited subagent´s license, nor shall the agent or
limited subagent share a commission except with an agent licensed pursuant to
this article; with an agency that has as its proprietor or as a partner in the
agency or as an officer or employee of the agency one or more agents licensed in
regard to insurance that is within the scope of his or her agency; or with an
agent or agency having a residence or situs in another state and a license from
such other state for the transaction of insurance in that
state."
SECTION
20.
Said
article is further amended by revising Code Section 33-23-41, relating to
liability and penalties for unauthorized acts, as follows:
"33-23-41.
Any
person who in this state acts, purports to act, or holds himself or herself out
as an agent, limited subagent, counselor, or adjuster or as an employee of an
agent, limited subagent, counselor, or adjuster of or for an insurer that has
not obtained from the Commissioner a certificate of authority then in effect to
do business in this state as required by this title or who has not obtained a
certificate of authority as required by this article and any person who in this
state collects or forwards any premium or portion of the premium for or to the
insurer shall pay a sum equal to the state, county, and municipal taxes and
license fees required to be paid by the insurance companies legally doing
business in this state. It is the Commissioner´s duty to report violators
of this Code section to the district attorney for the county in which the
violations occurred. Violators of this Code section shall also be personally
liable to the same extent as the insurer upon every contract of insurance made
by the insurer with reference to a risk having a situs in this state, if the
violator participated in the solicitation, negotiation, or making of the
contract or in any endorsement to the contract, in any modification of the
contract, or in the collection or forwarding of any premium or portion of the
premium relating to such contract. This Code section shall have no application
to a contract of insurance entered into in accordance with Chapter 5 of this
title."
SECTION
21.
All
laws and parts of laws in conflict with this Act are repealed.