Georgia House of Representatives - 1995/1996 Sessions

HB 330 - Ins; nonrecording/nonlicensing & vendor's single interest ins

Page Numbers - 1/ 2/ 3/ 4

Code Sections - 33-9-21.1/ 33-23-12

1. Williams  114th        2. Culbreth  132nd


House Comm: Ins        /                Senate Comm: I&L        /               
House Vote: Yeas 162   Nays 3           Senate Vote: Yeas 50  Nays 0            
              ----------------------------------------                          
               House          Action         Senate                             
              ----------------------------------------                          
              1/23/95  Read 1st Time         1/31/95                            
              1/24/95  Read 2nd Time         2/15/95                            
              1/26/95  Favorably Reported    2/14/95                            
              Am       Committee Amend/Sub                                      
              1/30/95  Read 3rd Time         3/8/95                             
              1/30/95  Passed/Adopted        3/8/95                             
              CA       Comm/Floor Amend/Sub  FA                                 
              3/13/95  Amend/Sub Agreed To                                      
              3/29/95  Sent to Governor                                         
              4/11/95  Signed by Governor                                       
              299      Act/Veto Number                                          
              4/11/95  Effective Date                                           
              ----------------------------------------                          
                                                                                
Code Sections amended: 33-7-3, 33-9-21.1, 33-23-12                              


HB 330                                             HB 330/AP

      H. B. No. 330 (AS PASSED HOUSE AND SENATE)
      By:  Representatives Williams of the 114th and Culbreth of
      the 132nd


                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Title 33 of the Official Code of Georgia Annotated,
  1- 2  relating to insurance, so as to provide definitions for
  1- 3  certain types of credit insurance known as nonrecording or
  1- 4  nonlicensing insurance and vendors' single interest
  1- 5  insurance; to provide for the maximum premium charge for
  1- 6  nonrecording or nonfiling insurance; to provide that data
  1- 7  for nonrecording or nonfiling insurance and vendors' single
  1- 8  interest insurance shall be filed and maintained separately
  1- 9  to facilitate the handling of form and rate filings; to
  1-10  provide for the issuance of agent's licenses for persons
  1-11  writing credit insurance; to provide for educational and
  1-12  other requirements for such licenses; to provide for matters
  1-13  relative to the foregoing; to provide an effective date; to
  1-14  repeal conflicting laws; and for other purposes.

  1-15       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1-16  Title 33 of the Official Code of Georgia Annotated, relating
  1-17  to insurance, is amended by striking paragraphs (10) and
  1-18  (11) of Code Section 33-7-3, relating to the definition of
  1-19  casualty insurance, and inserting in lieu thereof new
  1-20  paragraphs (10) through (13) to read as follows:

  1-21      "(10) Entertainments insurance, which is insurance
  1-22      indemnifying the producer of any motion picture,
  1-23      television, radio, theatrical, sport, spectacle,
  1-24      entertainment, or similar production, event, or
  1-25      exhibition against loss from interruption, postponement,
  1-26      or cancellation of such event or exhibition due to
  1-27      death, accidental injury, or sickness of performers,
  1-28      participants, directors, or other principals; and

  1-29      (11) Miscellaneous insurance, which is insurance against
  1-30      any other kind of loss, damage, or liability properly a
  1-31      subject of insurance and not within any other kind of
  1-32      insurance as defined in this title, if the insurance is



                             H. B. No. 330
                                 -1- (Index)

                                                   HB 330/AP

  2- 1      not disapproved by the Commissioner as being contrary to
  2- 2      law or public policy;

  2- 3      (12) Nonrecording insurance or nonfiling insurance,
  2- 4      which is insurance utilized in connection with credit
  2- 5      transactions in lieu of the actual recording, filing, or
  2- 6      releasing of a security instrument or financing
  2- 7      statement.  The premium charge for this insurance may
  2- 8      not exceed the actual official fees which would be
  2- 9      payable to file, record, or release a security
  2-10      instrument or financing statement.  This insurance
  2-11      provides coverage for any loss or potential loss caused
  2-12      by any means whereby the creditor is prevented from
  2-13      obtaining possession of the covered property, enforcing
  2-14      its rights under a security agreement, or of obtaining
  2-15      the proceeds to which it is entitled under the security
  2-16      agreement.  Nothing shall prohibit nonrecording
  2-17      insurance or nonfiling insurance from being
  2-18      incorporated, by endorsement or rider, into a vendor's
  2-19      single interest policy or a similar type of policy; and

  2-20      (13) Vendors' single interest insurance, which is
  2-21      insurance securing the interest of a creditor as
  2-22      respects potential loss relative to tangible property
  2-23      used as a collateral on credit transactions.  Such
  2-24      insurance may include, but is not limited to, the
  2-25      following coverages:  vandalism and malicious mischief,
  2-26      flood, collapse, alteration, skip, conversion,
  2-27      concealment, nonrecording insurance, misrepresentation,
  2-28      and embezzlement."

                         SECTION 2.

  2-29  Said title is further amended by adding immediately
  2-30  following Code Section 33-9-21, relating to the maintenance
  2-31  and filing of rates, rating systems, rating plans, or
  2-32  underwriting rules and the examination of claim reserves
  2-33  practices by the Commissioner, a new Code Section 33-9-21.1
  2-34  to read as follows:

  2-35    "33-9-21.1. (Index)

  2-36    In order to facilitate the handling of form and rate
  2-37    filings of certain types of miscellaneous casualty
  2-38    insurance which prior to July 1, 1995, has been filed
  2-39    generally under paragraph (11) of Code Section 33-7-3, the
  2-40    following types of casualty insurance shall be filed
  2-41    separately and data relative to such types of insurance
  2-42    shall be maintained separately:

                             H. B. No. 330
                                 -2- (Index)

                                                   HB 330/AP

  3- 1      (1) Nonrecording insurance or nonfiling insurance; and

  3- 2      (2) Vendors' single interest insurance."

                         SECTION 3.

  3- 3  Said title is further amended by striking Code Section
  3- 4  33-23-12, relating to the issuance of limited licenses for
  3- 5  specific lines or sublines of insurance, and inserting in
  3- 6  lieu thereof a new Code Section 33-23-12 to read as follows:

  3- 7    "33-23-12. (Index)

  3- 8    (a) Except as provided in subsection (b) of this Code
  3- 9    section for credit insurance licenses, the The
  3-10    Commissioner may provide by rule or regulation for
  3-11    licenses of agents or subagents which are limited in scope
  3-12    to specific lines or sublines of insurance as defined in
  3-13    this title, and such limited license may be issued without
  3-14    requiring the applicant to hold an agent's license.

  3-15      (b)(1) Licenses shall be issued to individual persons
  3-16      for the purpose of writing credit insurance as provided
  3-17      in this subsection.  Applicants must be sponsored by an
  3-18      insurer authorized to write credit insurance in this
  3-19      state, and the applicant must certify that he or she has
  3-20      read and understands the provisions of this title and
  3-21      regulations promulgated pursuant to this title which are
  3-22      pertinent to credit insurance in this state.

  3-23      (2) No prelicensing education or prelicensing
  3-24      examination shall be required for issuance of such
  3-25      license, and the insurer shall certify that the licensee
  3-26      has completed a minimum of five hours of self-study in
  3-27      credit insurance subjects.

  3-28      (3) The lines or sublines of insurance included in the
  3-29      scope of authority of credit insurance licenses issued
  3-30      under this Code section, whether issued as an agent or
  3-31      subagent license, shall include, but not be limited to,
  3-32      the following:

  3-33        (A) Credit life and credit accident and sickness
  3-34        insurance;

  3-35        (B) Credit casualty insurance;

  3-36        (C) Credit property insurance;

  3-37        (D) Credit unemployment insurance;

  3-38        (E) Accidental death and dismemberment insurance;


                             H. B. No. 330
                                 -3- (Index)

                                                   HB 330/AP

  4- 1        (F) Nonfiling or nonrecording insurance;

  4- 2        (G) Vendors' single interest insurance; and

  4- 3        (H) Any other lines or sublines of insurance which may
  4- 4        become accepted as credit insurance by the insurance
  4- 5        and lending industries unless otherwise disapproved by
  4- 6        the Commissioner."

                         SECTION 4.

  4- 7  This Act shall become effective upon its approval by the
  4- 8  Governor or upon its becoming law without such approval.

                         SECTION 5.

  4- 9  All laws and parts of laws in conflict with this Act are
  4-10  repealed.
































                             H. B. No. 330
                                 -4- (Index)