Georgia House of Representatives - 1995/1996 Sessions

HB 421 - Motor vehicle insurance; nonrenewal; prohibitions

Page Numbers - 1/ 2/ 3

1. Holland  157th


House Comm: Ins        /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
              ----------------------------------------                                              
               House          Action         Senate                                                 
              ----------------------------------------                                              
              1/26/95  Read 1st Time                                                                
              1/27/95  Read 2nd Time                                                                
              ----------------------------------------                                              
                                                                                                    
Code Sections amended:                                                                              


HB 421                                            LC 21 3140






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Article 1 of Chapter 24 of Title 33 of the Official
  1- 2  Code of Georgia Annotated, relating to general provisions
  1- 3  relative to insurance, so as to provide that an insurer may
  1- 4  not refuse to renew a policy of automobile or motorcycle
  1- 5  insurance because of accidents not the fault of the covered
  1- 6  driver or uninsured motorist claims or for certain other
  1- 7  reasons; to provide that an insurer may not refuse to renew
  1- 8  a policy of casualty insurance covering residential property
  1- 9  and the contents thereof because of claims against the
  1-10  policy which were not attributable to the negligence or
  1-11  intentional acts of the policy owner or the resident; to
  1-12  provide that refusal to renew such policies may be based on
  1-13  certain events; to repeal conflicting laws; and for other
  1-14  purposes.

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

                         SECTION 1.

  1-16  Article 1 of Chapter 24 of Title 33 of the Official Code of
  1-17  Georgia Annotated, relating to general provisions relative
  1-18  to insurance, is amended by striking paragraph (3) of
  1-19  subsection (e) of Code Section 33-24-45, relating to
  1-20  cancellation or nonrenewal of automobile or motorcycle
  1-21  policies, in its entirety and inserting in lieu thereof the
  1-22  following:

  1-23      "(3) No notice refusing the renewal of a policy issued
  1-24      for delivery in this state shall be mailed or delivered
  1-25      by an insurer or its agent duly authorized to effect
  1-26      such notice of nonrenewal for the following reasons:

  1-27        (A) Lack of, lack of potential for, or failure to
  1-28        agree to a writing of supporting insurance business;

  1-29        (B) A change in the insurer's eligibility rules or
  1-30        underwriting rules, provided that this subparagraph
  1-31        shall not apply to a change in such rules if the
  1-32        change applies uniformly within a specific class or
  1-33        territory and such change has been approved by the


                                 -1- (Index)

                                                  LC 21 3140

  2- 1        Commissioner under subparagraph (B) of paragraph (4)
  2- 2        of this subsection;

  2- 3        (C) With respect to any driver or with respect to any
  2- 4        automobile or its replacement, except when the
  2- 5        replacement is such that together with other relevant
  2- 6        underwriting or eligibility rules it would not have
  2- 7        been insured as an original policy risk of the
  2- 8        insurer, for: two or fewer of the following within the
  2- 9        preceding 36 month period:

  2-10          (i) Accidents involving two or more motor vehicles
  2-11          in which the driver of the insured automobile under
  2-12          this subparagraph was not at fault;

  2-13          (ii) Uninsured or underinsured motorist coverage
  2-14          claims;

  2-15          (iii) Comprehensive coverage claims; and

  2-16          (iv) Two or fewer towing Towing or road service
  2-17          coverage claims within the preceding 36 month
  2-18          period;

  2-19        (D) Age, sex, location of residence address within the
  2-20        state, race, creed, national origin, ancestry, or
  2-21        marital status;

  2-22        (E) Lawful occupation, provided that the insured
  2-23        automobile is not used in such occupation and
  2-24        provided, further, that such automobile would have
  2-25        been insured as an original policy risk of the insurer
  2-26        when such occupation is considered together with other
  2-27        relevant underwriting or eligibility rules of the
  2-28        insurer;

  2-29        (F) Military service, provided that the named insured
  2-30        has no change of legal residence from this state;

  2-31        (G) Number of years of driving experience of a named
  2-32        insured or of any other operator who is either a
  2-33        resident in the same household or customarily an
  2-34        operator of an automobile insured under such policy;

  2-35        (H) Accidents or violations which occurred more than
  2-36        36 months prior to the expiration date or anniversary
  2-37        date of the policy or solely for claims paid or
  2-38        payable pursuant to the policy during the preceding 36
  2-39        month period which did not aggregate in an amount in
  2-40        excess of $750.00;



                                 -2- (Index)

                                                  LC 21 3140

  3- 1        (I) One claim against the policy based on fault if
  3- 2        such coverage has been in effect continuously for at
  3- 3        least 36 preceding months;

  3- 4        (J) Notwithstanding subparagraph (H) of this
  3- 5        paragraph, two claims against the policy based on
  3- 6        fault if such coverage has been in effect continuously
  3- 7        for at least 72 preceding months; and

  3- 8        (K) Factors not relating to the claims record, driving
  3- 9        record, or driving ability of the named insured or of
  3-10        any other operator who is either a resident in the
  3-11        same household or customarily an operator of an
  3-12        automobile insured under such policy."

                         SECTION 2.

  3-13  Said article is further amended by striking in its entirety
  3-14  subsection (j) of Code Section 33-24-46, relating to
  3-15  cancellation or nonrenewal of certain property insurance
  3-16  policies, and inserting in lieu thereof the following:

  3-17    "(j) No notice refusing the renewal of a policy issued for
  3-18    delivery in this state shall be mailed or delivered by an
  3-19    insurer or its agent duly authorized to effect such notice
  3-20    of nonrenewal for the following reasons:

  3-21      (1) Lack of, lack of potential for, or failure to agree
  3-22      to a writing of supporting insurance business;

  3-23      (2) A change in the insurer's eligibility rules or
  3-24      underwriting rules, provided that this paragraph shall
  3-25      not apply to a change in such rules if the change
  3-26      applies uniformly within a specific class or territory
  3-27      and such change has been approved by the Commissioner
  3-28      under subsection (k) of this Code section; and

  3-29      (3) Any Two or fewer claims against the policy within
  3-30      the preceding 36 month period if such claims are not
  3-31      attributable to the negligent or intentional acts of the
  3-32      insured or of persons residing at the insured premises."

                         SECTION 3.

  3-33  All laws and parts of laws in conflict with this Act are
  3-34  repealed.







                                 -3- (Index)