sb276_LC_28_3720S_hss_7.html
07 LC 28 3720S

The House Committee on Judiciary Non-civil offers the following substitute to SB 276:

A BILL TO BE ENTITLED
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 uninsured motorist coverage applies only to automobile liability policies and motor vehicle liability policies; to specifically exclude umbrella and excess liability policies; 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 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 paragraph (3) of subsection (a) of Code Section 33-7-11, relating to uninsured motorist coverage under motor vehicle liability policies, as follows:
"(3) The coverage required under paragraph (1) of this subsection shall not be applicable where any insured named in the policy shall reject the coverage in writing. The coverage required under paragraph (1) of this subsection shall only apply to automobile liability policies and motor vehicle liability policies and shall not apply to umbrella or excess liability policies. The coverage need not be provided in or supplemental to a renewal policy where the named insured had rejected the coverage in connection with a policy previously issued to said insured by the same insurer. The amount of coverage need not be increased in a renewal policy from the amount shown on the declarations page for coverage existing prior to July 1, 2001. The amount of coverage need not be increased from the amounts shown on the declarations page on renewal once coverage is issued."

SECTION 2.
Said chapter is further 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 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 shall apply to the insured´s losses in addition to, but not duplicative of, the amounts payable under any available bodily injury liability insurance and property damage liability insurance coverages; provided, however, that the insured´s total recovery shall not exceed the insured´s total bodily injury and property damage losses. 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 3.
This Act shall become effective on January 1, 2008, and shall apply to all policies issued, delivered, issued for delivery, or renewed in this state on and after such date.

SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.