Georgia: Senate Passes Accident ‘Taxes’ Ban

On Friday, the Georgia Senate passed a revised version of SB 348 to ban the collection of accident response fees by municipalities and counties. The revised bill is a result of negotiations between insurance industry representatives and city and county government representatives.

Several exceptions have been added, including fees for services expressly provided in an insurance contract, fees for medical services provided by medical insurance, and fees expressly authorized by state or federal law to be billed directly to an insurance company.

Also on Friday, the House Insurance Committee gave a favorable report to a compromise version of HB 673, regarding third-party liens. The committee substitute requires insurance companies that provide estimates to include language on the estimates, warning consumers that failure to use insurance proceeds in the manner required by their security agreement, if any, would violate Georgia law.

Legislation in Georgia must “cross over” from one body to the other by day 30 of the session in order to stay alive. Today is day 27.

A credit freeze bill is very likely to become law, as both the House and Senate versions have passed in their respective houses. HB 130 and SB 361 contain language allowing an exception for “insurance purposes, including use in setting or adjusting a rate, adjusting a claim, or underwriting.”

“There are many bills of concern that have been introduced in Georgia this year, but very few have moved so far," said Liz Reynolds, NAMIC's Southeastern state affairs manager. "With the cross-over date fast approaching, we’ll see a burst of activity.”

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, March 04, 2008 12:00:00 AM. Modified: Tuesday, March 04, 2008 2:46:40 PM.

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