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HB 1369 - Motor carriers; certificate of indemnity insurance in lieu of bond

Reichert, Robert A. B. (126th)	Murphy, Thomas B (18th)

Status Summary	HC:	Judy	SC:		FR:	02/07/00	LA:	02/29/00	H - Favorably Reported

First Reader Summary

A BILL to amend Article 1 of Chapter 7 of Title 46 of the Official Code of Georgia Annotated, relating to motor common or contract carriers, so as to change certain provisions relating to obtaining of security bond, indemnity insurance, or self-insurance before issuance of certificate or permit; and for other purposes.

Code Sections - 46-7-12

HB 1369                                            LC 25 1440 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Article 1 of Chapter 7 of Title 46 of the Official 
  1- 2  Code of Georgia Annotated, relating to motor common or 
  1- 3  contract carriers, so as to change certain provisions 
  1- 4  relating to obtaining of security bond, indemnity insurance, 
  1- 5  or self-insurance before issuance of certificate or permit; 
  1- 6  to repeal conflicting laws; and for other purposes. 
 
  1- 7       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 8                           SECTION 1. 
 
  1- 9  Article 1 of Chapter 7 of Title 46 of the Official Code of 
  1-10  Georgia Annotated, relating to motor common or contract 
  1-11  carriers, is amended by striking Code Section 46-7-12, 
  1-12  relating to requirement as to obtaining of security bond, 
  1-13  indemnity insurance, or self-insurance before issuance of 
  1-14  certificate or permit, and inserting in lieu thereof the 
  1-15  following: 
 
  1-16    "46-7-12. 
 
  1-17    (a) No certificate or permit shall be issued or continued 
  1-18    in operation unless the applicant or holder shall give and 
  1-19    maintain bond, with adequate security, for the protection, 
  1-20    in case of passenger vehicles, of the passengers and 
  1-21    baggage carried and of the public against injury 
  1-22    proximately caused by the negligence of such motor common 
  1-23    or contract carrier, its servants, or its agents. In cases 
  1-24    of vehicles transporting freight, the applicant or holder 
  1-25    shall give bond, with adequate security, to secure the 
  1-26    owner or person entitled to recover therefor against loss 
  1-27    or damage to such freight for which the motor common or 
  1-28    contract carrier may be legally liable and for the 
  1-29    protection of the public against injuries proximately 
  1-30    caused by the negligence of such motor carrier, its 
  1-31    servants, or its agents. 
 
  1-32    (b) The commission shall approve, determine, and fix the 
  1-33    amount of such bonds and shall prescribe the provisions 
  1-34    and limitations thereof; and such bonds shall be for the 
 
 
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  2- 1    benefit of and subject to action thereon by any person who 
  2- 2    shall sustain actionable injury or loss protected thereby. 
 
  2- 3    (c) The commission may, in its discretion, allow the 
  2- 4    holder of such certificate or permit to file, in lieu of 
  2- 5    such bond, a policy of indemnity insurance in some 
  2- 6    indemnity insurance company authorized to do business in 
  2- 7    this state, which policy must substantially conform to all 
  2- 8    of the provisions of this article relating to bonds, or a 
  2- 9    certificate evidencing coverage under such policy. Such 
  2-10    policy or certificate of insurance must also be approved 
  2-11    by the commission. 
 
  2-12    (d) The commission shall have power to permit 
  2-13    self-insurance, in lieu of a bond or policy or certificate 
  2-14    of indemnity insurance, whenever in its opinion the 
  2-15    financial ability of the motor carrier so warrants. 
 
  2-16    (e) It shall be permissible under this article for any 
  2-17    person having a cause of action arising under this article 
  2-18    in tort or contract to join in the same action the motor 
  2-19    carrier and its surety, in the event a bond is given. If a 
  2-20    bond is not given but a policy of indemnity insurance is 
  2-21    given in lieu of bond providing coverage for injury, loss, 
  2-22    or damage caused by act or omission of the motor carrier 
  2-23    or its servants or agents was in effect at the time such 
  2-24    cause of action arose, it shall be permissible to join the 
  2-25    motor carrier and the insurance carrier in the same 
  2-26    action, whether arising in tort or contract and without 
  2-27    regard to whether such policy of insurance or a 
  2-28    certificate thereof was filed with or approved by the 
  2-29    commission as required by subsection (c) of this Code 
  2-30    section." 
 
  2-31                           SECTION 2. 
 
  2-32  All laws and parts of laws in conflict with this Act are 
  2-33  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
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