| 1 | 1 | | 25 LC 52 0706 |
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| 2 | 2 | | House Bill 220 |
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| 3 | 3 | | By: Representatives Momtahan of the 17 |
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| 4 | 4 | | th |
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| 5 | 5 | | , Carpenter of the 4 |
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| 6 | 6 | | th |
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| 7 | 7 | | , Gunter of the 8 |
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| 8 | 8 | | th |
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| 9 | 9 | | , and New |
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| 10 | 10 | | of the 40 |
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| 11 | 11 | | th |
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| 12 | 12 | | |
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| 13 | 13 | | A BILL TO BE ENTITLED |
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| 14 | 14 | | AN ACT |
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| 15 | 15 | | To amend Chapter 7 of Title 33 of the Official Code of Georgia Annotated, relating to kinds |
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| 16 | 16 | | 1 |
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| 17 | 17 | | of insurance, limits of risks, and reinsurance, so as to provide for an insurer under a liability2 |
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| 18 | 18 | | insurance policy to pay a third party and the senior lienholder under certain circumstances;3 |
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| 19 | 19 | | to provide for an effective date and applicability; to provide for related matters; to repeal4 |
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| 20 | 20 | | conflicting laws; and for other purposes.5 |
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| 21 | 21 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 |
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| 22 | 22 | | SECTION 1.7 |
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| 23 | 23 | | Chapter 7 of Title 33 of the Official Code of Georgia Annotated, relating to kinds of8 |
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| 24 | 24 | | insurance, limits of risks, and reinsurance, is amended in Code Section 33-7-11.1, relating9 |
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| 25 | 25 | | to commencement of liability of insurer to pay benefits to third party on behalf of insured and10 |
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| 26 | 26 | | applicability of the Code section, by revising subsections (c) and (d) as follows:11 |
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| 27 | 27 | | "(c) When making any payment to a third party for damage to an automobile for any loss,12 |
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| 28 | 28 | | the insurer shall pay the third party and the senior lienholder of record, if any, as their |
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| 29 | 29 | | 13 |
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| 30 | 30 | | interests may appear on the records of ownership and shall have printed on the loss14 |
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| 31 | 31 | | estimate, if prepared directly by the insurer, the following:15 |
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| 32 | 32 | | H. B. 220 |
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| 33 | 33 | | - 1 - 25 LC 52 0706 |
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| 34 | 34 | | 'Failure to use the insurance proceeds in accordance with a security agreement between |
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| 35 | 35 | | 16 |
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| 36 | 36 | | you and a lienholder, if any, may be a violation of Code Section 16-8-4 of the O.C.G.A. 17 |
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| 37 | 37 | | If you have any questions, contact your lending institution.'18 |
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| 38 | 38 | | This subsection does not apply if the insurer does not prepare the loss estimate or if the19 |
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| 39 | 39 | | estimate is not prepared in the State of Georgia.20 |
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| 40 | 40 | | (d) The provisions of this Code section shall be applicable to all automobile liability or21 |
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| 41 | 41 | | motor vehicle liability insurance policies that pay benefits to a third party on behalf of an22 |
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| 42 | 42 | | insured for the loss of use and towing and storage costs of such motor vehicle issued,23 |
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| 43 | 43 | | delivered, or renewed in this state on or after January 1, 2009."24 |
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| 44 | 44 | | SECTION 2.25 |
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| 45 | 45 | | This Act shall become effective on July 1, 2025, and shall apply to all liability insurance26 |
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| 46 | 46 | | policies issued, delivered, issued for delivery, or renewed in this state on or after such date.27 |
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| 47 | 47 | | SECTION 3.28 |
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| 48 | 48 | | All laws and parts of laws in conflict with this Act are repealed.29 |
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| 49 | 49 | | H. B. 220 |
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| 50 | 50 | | - 2 - |
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