Georgia Senate - 1995/1996 Sessions

SB 238 - Auto Insur. Pmt. - coverage can- cellation when bad check issued

Page Numbers - 1/ 2

1. Crotts  17th           2. Guhl  45th              3. Ray  19th


Senate Comm: I&L        /         House Comm: Ins        /                                          
Senate Vote: Yeas 53    Nays 1                                                                      
           ---------------------------------------------                                            
              Senate          Action          House                                                 
           ---------------------------------------------                                            
             1/30/95   Read 1st time          2/8/95                                                
             2/2/95    Favorably Reported     2/17/95                                               
             Am        Committee Amend/Sub                                                          
             2/3/95    Read 2nd Time          2/9/95                                                
                       Committed              3/17/95                                               
             2/7/95    Read 3rd Time                                                                
             2/7/95    Passed/Adopted                                                               
             CA        Comm/Floor Amend/Sub                                                         
           ---------------------------------------------                                            
                                                                                                    
Code Sections amended: 33-34-3                                                                      


SB 23895                                          SB238/CA/3

      SENATE BILL 238

      By:  Senators Crotts of the 17th, Guhl of the 45th,
           Ray of the 19th and others

                        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 as provided in
  1- 7  Code Section 33-24-44;  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 such advance payment in the form of a check
  1-33        or money order which is not honored upon initial


                             S. B. 238
                                 -1- (Index)

                                                  SB238/CA/3

  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 as
  2- 5        provided in Code Section 33-24-44."

                         SECTION 2.

  2- 6  All laws and parts of laws in conflict with this Act are
  2- 7  repealed.






































                             S. B. 238
                                 -2- (Index)