Georgia: Session Adjourns; Insurance Bills Await Governor’s Signature

The Georgia General Assembly adjourned at midnight April 4, ending 40 days of often rancorous debate between the House and Senate. Lt. Gov. Casey Cagle, who presides over the Senate, and House Speaker Glenn Richardson kept up a bitter feud throughout the session. The two are expected to vie for the Republican Party’s nomination for governor in 2010.

Several insurance-related bills that will benefit consumers passed during the days leading up to the final gavel; all now await the governor’s signature.

SB 276 allows consumers to select their preferred coverage level for uninsured motorist coverage. The bill also modernizes the private passenger automobile rate-setting process for insurers, allowing companies to set rates for elective coverages without the commissioner’s approval. Regulatory oversight will continue for mandatory minimum limits coverage.

“Insurance Commissioner Oxendine is vehemently opposed to SB 276,” said Liz Reynolds, NAMIC's Southeast state affairs manager, “but insurance industry representatives are hopeful that Governor Perdue will understand the benefits to policyholders and companies and sign the legislation into law.”

SB 348 bans collection of accident response fees by municipalities and counties. The bill is similar to others that have passed in Tennessee, Indiana, Missouri, and Pennsylvania. “With his signature on SB 348, Governor Perdue will bring Georgia into the vanguard of states taking action to ensure citizens are not subject to double taxation for core government services,” Reynolds said.

On the last day of session, the Senate agreed with House amendments on HB 130, credit freeze legislation, making that bill eligible for the governor’s desk as well. HB 130 contains language allowing an exception for “insurance purposes, including use in setting or adjusting a rate, adjusting a claim, or underwriting.”

HB 1235 passed on April 2. With the governor’s signature, the legislation will ensure a law enforcement agency or political subdivision that improperly tows or impounds a vehicle with a valid fleet card is responsible for the costs that result. The bill originally eliminated the fleet exception to the GEICS database for reporting motor vehicle liability coverage to the state.

“This year’s session ended with positive outcomes for consumers and insurers in Georgia and is the result of coordinated activity by company and trade representatives,” Reynolds emphasized. “NAMIC is pleased to be part of the Peach State team.”

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, April 08, 2008 12:00:00 AM. Modified: Tuesday, April 08, 2008 3:35:56 PM.

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