Georgia House of Representatives - 1995/1996 Sessions

HB 49 - Motor veh ins; cancellation; dishonored check

Page Numbers - 1/ 2

1. Williams  114th        2. Towery  30th            3. Harbin  113th


House Comm: Ins        /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
              ----------------------------------------                                              
               House          Action         Senate                                                 
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              1/9/95   Read 1st Time                                                                
              1/10/95  Read 2nd Time                                                                
              ----------------------------------------                                              
Rules Suspended to Introduce                                                                        
                                                                                                    
Code Sections amended: 33-34-3                                                                      


HB 49                                             LC 14 6333






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Code Section 33-34-3 of the Official Code of
  1- 2  Georgia Annotated, relating to requirements concerning
  1- 3  issuance of motor vehicle insurance policies, so as to
  1- 4  provide that when a check or money order issued in payment
  1- 5  of certain types of motor vehicle insurance policies is
  1- 6  dishonored, the coverage may be cancelled without notice and
  1- 7  voided ab initio; to provide that acceptance of an
  1- 8  instrument which is so dishonored shall constitute
  1- 9  compliance with prepayment requirements; to provide for
  1-10  other related matters; to repeal conflicting laws; and for
  1-11  other purposes.

  1-12       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1-13  Code Section 33-34-3 of the Official Code of Georgia
  1-14  Annotated, relating to requirements concerning issuance of
  1-15  motor vehicle insurance policies, is amended by striking
  1-16  paragraph (4) of subsection (a) and inserting in its place a
  1-17  new paragraph to read as follows:

  1-18        "(4)(A) No insurer shall issue a policy of motor
  1-19        vehicle liability insurance without requiring advance
  1-20        payment for the first 60 days of coverage. Insurers
  1-21        may rely on the insured's statements in the policy
  1-22        application for the purpose of calculating the initial
  1-23        payment required by this paragraph. This paragraph
  1-24        shall not apply to any renewal or continuation of a
  1-25        policy, to any replacement of a policy where there is
  1-26        no lapse of coverage, or to any personal automobile
  1-27        policy issued in connection with an employer-sponsored
  1-28        payroll deduction plan.  This paragraph shall apply
  1-29        only to personal automobile or family-type automobile
  1-30        liability insurance policies.

  1-31        (B) If an insurer, agent, or premium finance company
  1-32        collects the advance payment in the form of a check or
  1-33        money order which is not honored upon initial



                                 -1- (Index)

                                                  LC 14 6333

  2- 1        presentation, such insurer, agent, or premium finance
  2- 2        company shall be deemed to have complied with
  2- 3        subparagraph (A) of this paragraph and may,
  2- 4        thereafter, cancel for nonpayment of premium without
  2- 5        any notice of intent to cancel being required. Such
  2- 6        insurance may be voided ab initio by the insurer,
  2- 7        provided that the insured is promptly notified by
  2- 8        first class mail."

                         SECTION 2.

  2- 9  All laws and parts of laws in conflict with this Act are
  2-10  repealed.




































                                 -2- (Index)