07 SB276/FA/1
Senate
Bill 276
By:
Senators Staton of the 18th, Harp of the 29th, Shafer of the 48th, Murphy of the
27th, Mullis of the 53rd and others
AS
PASSED SENATE
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 7 of Title 33 of the Official Code of Georgia Annotated, relating
to kinds of insurance, so as to provide that an uninsured motor vehicle includes
a motor vehicle for which the available coverages are inadequate to cover a
person´s bodily injury and property damage losses and that such motor
vehicle shall be considered uninsured to the full extent of the limits of the
uninsured motorist coverage provided under the insured´s motor vehicle
insurance policy; to provide that the issuer of a motor vehicle liability policy
may not deny coverage because of noncooperation by the insured; to provide for
related matters; to provide an effective date and for applicability; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
7 of Title 33 of the Official Code of Georgia Annotated, relating to kinds of
insurance, is amended by revising subparagraph (b)(1)(D) of Code Section
33-7-11, relating to uninsured motorist coverage under motor vehicle liability
policies, as follows:
"(D)
'Uninsured motor vehicle' means a motor vehicle, other than a motor vehicle
owned by or furnished for the regular use of the named insured, the spouse of
the named insured, and, while residents of the same household, the relative of
either, as to which there is:
(i)
No bodily injury liability insurance and property damage liability
insurance;
(ii)
Bodily injury liability insurance and property damage liability insurance with
available coverages
which are
less than the limits of the uninsured motorist coverage provided under the
insured´s insurance policy, but the motor vehicle shall only be considered
to be uninsured for the amount of the difference between the available coverages
under the bodily injury liability insurance and property damage liability
insurance coverages on such motor vehicle and the limits of the uninsured
motorist coverage provided under the insured´s motor vehicle insurance
policy; and for
but such
coverages are inadequate to cover fully the insured´s bodily injury and
property damage losses. Such motor vehicle shall be considered uninsured to the
full extent of the limits of the uninsured motorist coverage provided under the
insured´s motor vehicle insurance policy and such coverage is intended to
be applicable to the insured´s losses in addition to the amounts payable
under any available bodily injury liability insurance and property damage
liability insurance coverages. For this
purpose available coverages under the bodily injury liability insurance and
property damage liability insurance coverages on such motor vehicle shall be the
limits of coverage less any amounts by which the maximum amounts payable under
such limits of coverage have, by reason of payment of other claims or otherwise,
been reduced below the limits of coverage;
(iii)
Bodily injury liability insurance and property damage liability insurance in
existence but the insurance company writing the insurance has legally denied
coverage under its policy;
(iv)
Bodily injury liability and property damage liability insurance in existence but
the insurance company writing the insurance is unable, because of being
insolvent, to make either full or partial payment with respect to the legal
liability of its insured, provided that in the event that a partial payment is
made by or on behalf of the insolvent insurer with respect to the legal
liability of its insured then the motor vehicle shall only be considered to be
uninsured for the amount of the difference between the partial payment and the
limits of the uninsured motorist coverage provided under the insured´s
motor vehicle insurance policy; or
(v)
No bond or deposit of cash or securities in lieu of bodily injury and property
damage liability insurance."
SECTION
2.
This Act shall become effective on July 1, 2007, and shall apply to all policies issued, delivered, issued for delivery, or renewed in this state on and after such date.
This Act shall become effective on July 1, 2007, and shall apply to all policies issued, delivered, issued for delivery, or renewed in this state on and after such date.
SECTION
3.
Said chapter is further amended by revising subsection (b) of Code Section 33-7-15, relating to cooperation by insured with insurer in connection with defense of action or threatened action under policy, as follows:
Said chapter is further amended by revising subsection (b) of Code Section 33-7-15, relating to cooperation by insured with insurer in connection with defense of action or threatened action under policy, as follows:
"(b)
Noncompliance by the insured with this required provision or endorsement shall
constitute a breach of the insurance contract which, if prejudicial to the
insurer, shall relieve the insurer of its obligation to defend its insureds
under the policy
and
of
but shall in
no event relieve the insurer of any
liability to pay any judgment or other sum on behalf of its
insureds.
SECTION
4.
All laws and parts of laws in conflict with this Act are repealed.
All laws and parts of laws in conflict with this Act are repealed.