07 LC 28
3386
Senate
Bill 113
By:
Senators Shafer of the 48th, Hudgens of the 47th and Moody of the 56th
A
BILL TO BE ENTITLED
AN ACT
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 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 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 33-23-5, relating to qualifications and
requirements for license, as follows:
"(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 must be a resident of this state who will 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, in
cities, towns, or trade areas, either unincorporated or
comprised
composed
of two or more incorporated cities or towns, located partly within and partly
outside the 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 must be at least 18 years of age;
(2)
If applying for an agent´s license for property and casualty insurance, the
applicant must not use or intend to use the license for the purpose of obtaining
a rebate or commission upon controlled business; and the applicant must 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 must
have
been
be
appointed an agent by an authorized insurer
subject
prior
to issuance of the license;
(4)
The individual applicant must be of good character
and the
Commissioner may, by rule or regulation, establish criteria and procedures for
criminal or other background check
requirements;
(5)
The individual applicant must 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 is only 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 must 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 the 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, 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."
SECTION
2.
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
a
written
an
application upon forms prescribed by the Commissioner.
The
application shall be signed and verified by the oath of the
applicant.
(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.
and
If applying as
a limited subagent,
shall be
accompanied by written appointment of the
applicant must
be appointed as
agent
or
a
limited subagent by
an
authorized insurer or
a
sponsoring agent
subject
prior
to
the
issuance of the license.
(c)
As to any application for
an
agent´s or
a
limited subagent´s license or
certificate of authority, the Commissioner shall require as part of the
application a certificate of the
insurer
or 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
insurer
or sponsoring agent is satisfied that the
applicant is trustworthy and qualified to act as its
agent
or
limited
subagent and to hold himself or herself out in good faith to the general public
as an agent or
subagent,
and the fact that the
insurer
or sponsoring agent desires that the
applicant be licensed as
an agent
or
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
3.
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
a
written
an
application for a limited
license,
signed by an officer of the applicant, 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
offer or sell insurance through licensed insurers only 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 may 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' shall mean
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 shall issue limited licenses to each business location of a
retail vendor of communications equipment which covers employees and authorized
representatives of such retail vendors for the sale and offer for sale of
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
a
written
an
application for such limited license
or licenses,
in a form and manner prescribed by the
Commissioner,
signed by the applicant or an officer of the applicant, on such form or forms,
and supplements thereto, and containing such information as the Commissioner may
prescribe.
(5)
Each retail vendor licensed pursuant to this subsection shall provide a training
program in which employees and authorized representatives of the retail vendor
are 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
4.
Said
article is further amended by revising Code Section 33-23-13, relating to
temporary licenses, by adding a new subsection (e) to read as
follows:
"(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 the
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
5.
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 is prohibited from selling, soliciting, or negotiating
insurance
has been in
such status for two consecutive years without a certificate of authority having
been filed with and accepted by the Commissioner, such license may be revoked
without further notice or
hearing."
SECTION
6.
Said
article is further amended by revising Code Section 33-23-26, relating to
agent´s certificate of authority, by adding a new subsection (i) 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 the applicant
is trustworthy and qualified to act as its agent."
SECTION
7.
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
8.
All
laws and parts of laws in conflict with this Act are repealed.