Georgia: Accident ‘Taxes’ Ban Proposed

Georgia Senate Insurance and Labor Committee Chairman Ralph Hudgens has introduced SB 348 to prohibit the collection of accident response fees by municipalities and counties. The committee gave the bill a favorable report on Jan. 31, but the chairman asked that it be recommitted in order to resolve concerns raised by city and county governments.

NAMIC is working with its advocacy partner, the Georgia Association of Property Casualty Insurance Companies, to address questions about SB 348. “We commend Chairman Hudgens for moving quickly to address this issue in Georgia before too many cities and towns attempt to implement what we consider to be a form of double taxation," said Liz Reynolds, NAMIC's Southeastern state affairs manager. "SB 348 will ‘nip it in the bud.’”

The industry is actively working to oppose HB 673, which would require a third party’s lienholder to be included on any settlement draft or payment. The bill was carried over from the 2007 session and is backed by the Georgia Independent Automobile Dealers Association. It poses serious problems for auto insurers, as currently drafted. Bill sponsor Rep. Bill Hembree withdrew HB 673 last week in hopes that interested parties will work out areas of disagreement.

Also in Georgia, House Resolution 1076 was introduced by Rep. Rich Golich and others to create the House Study Committee on Georgia Coastal Property Insurance.

The proposed purpose of the committee is to study the “conditions, needs, issues, and problems in the availability, adequacy, and cost of coastal property insurance and recommend any actions or legislation that the committee deems necessary or appropriate.” It would be composed of five members of the House of Representatives to be appointed by the Speaker of the House of Representatives after the end of the session.

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, February 12, 2008 12:00:00 AM. Modified: Friday, February 15, 2008 2:44:12 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.