Georgia Code, Volume 24, 2013 Supplement

2013·18.2 MB·English

by  State of Georgia

OFFICIAL CODE OF GEORGIA
ANNOTATED
2013 Supplement
Including Acts ofthe 2013 Regular Session ofthe General Assembly
Prepared by
The Code Revision Commission
The Office ofLegislative Counsel
and
The Editorial Staff ofLexisNexis®
Published Under Authority ofthe State of Georgia
Volume 24
2000 Edition
Title 33. Insurance (Chapters 1—22)
IncludingAnnotations to the Georgia Reports
and the GeorgiaAppeals Reports
Place in Pocket of Corresponding Volume of
Main Set
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ISBN 978-0-327-11074-3 (set)
ISBN 978-0-327-10147-5
5014430
(Pub.41805)
THIS SUPPLEMENT CONTAINS
Statutes:
All laws specifically codified by the General Assembly ofthe State of
Georgia through the 2013 Regular Session ofthe General Assembly.
Annotations of Judicial Decisions:
Case annotations reflecting decisions posted to LexisNexis® through
March 29, 2013. These annotations will appear in the following tradi-
tional reporter sources: Georgia Reports; Georgia Appeals Reports;
Southeastern Reporter; Supreme Court Reporter; Federal Reporter;
Federal Supplement; Federal Rules Decisions; Lawyers' Edition;
United States Reports; and Bankruptcy Reporter.
Annotations ofAttorney General Opinions:
Constructions ofthe Official Code ofGeorgiaAnnotated, prior Codes
ofGeorgia, Georgia Laws, the Constitution ofGeorgia, and the Consti-
tution of the United States by the Attorney General of the State of
Georgia posted to LexisNexis® through March 29, 2013.
Other Annotations:
References to:
Emory Bankruptcy Developments Journal.
Emory International Law Review.
Emory Law Journal.
Georgia Journal of International and Comparative Law.
Georgia Law Review.
Georgia State University Law Review.
Mercer Law Review.
Georgia State Bar Journal.
Georgia Journal of Intellectual Property Law.
American Jurisprudence, Second Edition.
American Jurisprudence, Pleading and Practice.
American Jurisprudence, ProofofFacts.
American Jurisprudence, Trials.
Corpus Juris Secundum.
Uniform Laws Annotated.
American Law Reports, First through Sixth Series.
American Law Reports, Federal.
Tables:
In Volume 41, a Table Eleven-A comparing provisions of the 1976
Constitution ofGeorgia to the 1983 Constitution ofGeorgia and a Table
Eleven-B comparing provisions of the 1983 Constitution of Georgia to
the 1976 Constitution of Georgia.
An updated version of Table Fifteen which reflects legislation
through the 2013 Regular Session ofthe General Assembly.
iii
Indices:
A cumulative replacement index to laws codified in the 2013 supple-
ment pamphlets and in the bound volumes ofthe Code.
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IV
.
TITLE 33
INSURANCE
VOLUME
24
Chap.
1. General Provisions, 33-1-1 through 33-1-22.
2. Department and Commissioner of Insurance, 33-2-1
through 33-2-33.
3 Authorization and General Requirements for Transaction of
Insurance, 33-3-1 through 33-3-30.
4. Actions Against Insurance Companies, 33-4-1 through
33-4-7.
5. Regulation of Unauthorized Insurers, 33-5-1 through
33-5-59.
6. Unfair Trade Practices, 33-6-1 through 33-6-37.
7. Kinds of Insurance; Limits of Risks; Reinsurance, 33-7-1
through 33-7-15.
8. Fees and Taxes, 33-8-1 through 33-8-13.
9. Regulation of Rates, Underwriting Rules, and Related
Organizations, 33-9-1 through 33-9-44.
10. Assets and Liabilities, 33-10-1 through 33-10-17.
11. Investments, 33-11-1 through 33-11-89.
13. Insurance Holding Company Systems, 33-13-1 through
33-13-15.
14. Domestic Stock and Mutual Insurers, 33-14-1 through
33-14-109.
15. Fraternal Benefit Societies, 33-15-1 through 33-15-123.
16. Farmers' Mutual Fire Insurance Companies, 33-16-1
through 33-16-22.
19. Nonprofit Hospital Service Corporations, 33-19-1 through
33-19-22.
20A. Managed Health Care Plans, 33-20A-1 through 33-20A-70.
20B. Essential Rural Health Care Provider Access, 33-20B-1
through 33-20B-6.
2013 Supp.
1
T.33 INSURANCE T.33
21. Health Maintenance Organizations, 33-21-1 through
33-21-29.
21A. Medicaid Care Management Organizations, 33-21A-
through 33-21A-12.
22. Insurance Premium Finance Companies, 33-22-1 through
33-22-16.
VOLUME
25
23. Licensing, 33-23-1 through 33-23-205.
24. Insurance Generally, 33-24-1 through 33-24-98.
25. Life Insurance, 33-25-1 through 33-25-13.
26. Industrial Life Insurance, 33-26-1 through 33-26-7.
27. Group Life Insurance, 33-27-1 through 33-27-9.
28. Annuity and Pure Endowment Contracts, 33-28-1 through
33-28-7.
29. Individual Accident and Sickness Insurance, 33-29-1
through 33-29-22.
29A. Individual Health Insurance Coverage, 33-29A-1 through
33-29A-35.
29B. Health Care Coverage for Children, 33-29B-1 through
33-29B-8.
30. Group or BlanketAccident and Sickness Insurance, 33-30-1
through 33-30-29.
30A. Health Plan Purchasing Cooperatives, 33-30A-1 through
33-30A-11.
30B. Spending Account and Consumer Driven Health Plan
Advancement, 33-30B-1 through 33-30B-7.
31. Credit Life Insurance and Credit Accident and Sickness
Insurance, 33-31-1 through 33-31-12.
32. Property Insurance, 33-32-1 through 33-32-6.
33. Fair Access to Insurance Requirements, 33-33-1 through
33-33-11.
34. Motor Vehicle Accident Reparations, 33-34-1 through
33-34-9.
34A. Vehicle Protection Product Warranties, 33-34A-1 through
33-34A-13.
2 2013 Supp.
T.33 INSURANCE T.33
35. Prepaid Legal Services Plans, 33-35-1 through 33-35-23.
36. Georgia Insurers Insolvency Pool, 33-36-1 through
33-36-20.
37. Insurers Rehabilitation and Liquidation, 33-37-1 through
33-37-58.
38. Georgia Life and Health Insurance Guaranty
Association, 33-38-1 through 33-38-22.
39 Collection, Use, and Disclosure of Information Gathered by
.
Insurance Institutions, 33-39-1 through 33-39-23.
40. Risk Retention Groups, 33-40-1 through 33-40-21.
41. Captive Insurance Companies, 33-41-1 through 33-41-24.
42. Long-Term Care Insurance, 33-42-1 through 33-42-7.
43. Medicare Supplement Insurance, 33-43-1 through 33-43-9.
44. High Risk Health Insurance Plan, 33-44-1 through
33-44-10.
45. Continuing Care Providers and Facilities, 33-45-1 through
33-45-14.
46. Certification of Private Review Agents, 33-46-1 through
33-46-14.
47. Managing General Agents, 33-47-1 through 33-47-7.
48. Producer Controlled Property and Casualty
Insurers, 33-48-1 through 33-48-4.
49. Reinsurance Intermediaries, 33-49-1 through 33-49-11.
50. Multiple Employer Self-Insured Health Plans, 33-50-1
through 33-50-14.
51. Georgia Affordable HSA Eligible High Deductible Health
Plan, 33-51-1 through 33-51-7.
52. Assumption Reinsurance Agreements, 33-52-1 through
33-52-6.
53. Coverage for Certain Types of Anti-Cancer Drug
Therapy, 33-53-1 through 33-53-4.
54. Genetic Testing, 33-54-1 through 33-54-8.
55. Reporting of Transactions by Insurers, 33-55-1 through
33-55-3.
56. Risk-Based Capital Levels, 33-56-1 through 33-56-13.
2013 Supp. 3
.
T.33 INSURANCE T.33, C.l
57. Consumers' Insurance Advocate, 33-57-1 through 33-57-8.
58. Charitable Gift Annuities, 33-58-1 through 33-58-6.
59. Life Settlements, 33-59-1 through 33-59-18.
59A. Interstate Insurance Product Regulation
Compact, 33-59A-1 through 33-59A-2.
60 Small Business Employee Choice of Benefits Health Insur-
ance Plan Act, 33-60-1 through 33-60-6.
61. Regulation ofAutomobile Clubs, 33-61-1 through 33-61-2.
62. Property and Casualty Actuarial Opinion Law, 33-62-1
through 33-62-3.
63. Guaranteed Asset Protection Waivers, 33-63-1 through
33-63-9.
64. Regulation and Licensure of Pharmacy Benefits
Managers, 33-64-1 through 33-64-8.
—
Law reviews. For annual survey Insurance Through Federal Legislation,"
article on insurance law, see 49 Mercer L. see 44 Ga. L. Rev 511 (2010). For note,
Rev. 175 (1997). Forannual survey article "WhenanIdeaisMoreThanJustanIdea:
discussing developments in insurance Insurance Coverage of Business Method
law, see 51 Mercer L. Rev 313 (1999). For Patent Infringement Suits Under Adver-
annual survey article on insurance law, tising Injury Provisions of Commercial
see 52 Mercer L. Rev. 303 (2000). General Liability Policies," see 18 J.
Fornote, "The ParityCure: SolvingUn- Intell. Prop. L. 631 (2011).
equal Treatment ofMental Illness Health
CHAPTER
1
GENERAL PROVISIONS
Sec. Sec.
33-1-2. Definitions. care cost sharing arrange-
33-1-9. Insurance fraud; venue; pen- ments with participants not
alty; exemption. considered insurance company,
33-1-18. Housingtaxcreditforqualified health maintenance organiza-
projects; rules and regulations. tion, or health benefit plan.
33-1-19. Special Advisory Commission 33-1-21. Certain subscription agree-
onMandatedHealthInsurance ments for prepaid air ambu-
Benefits. lance service not contract of
33-1-20. Health care sharing ministry insurance; definitions.
denned; health care sharing 33-1-22. English language version of
ministry entering into health policy controls.
2013 Supp.
33-1-1 GENERAL PROVISIONS 33-1-2
33-1-1. Short title.
RESEARCH REFERENCES
Am. J—ur. Pleading and Practice
Forms. 14A Am. Jur. Pleading and
Practice Forms, Insurance, § 2.
33-1-2. Definitions.
As used in this title, the term:
(1) "Commissioner of Insurance" or "Commissioner" means the
Commissioner ofInsurance ofthe State of Georgia.
(1.1) "Health benefit policy," "health benefit plan," or other similar
terms do not include limited benefit insurance policies designed,
advertised, and marketed to supplement major medical insurance
such as accident only, Champus supplement, dental, disability in-
come, fixed indemnity, long-term care, Medicare supplement, speci-
fied disease, vision, and any other type of accident and sickness
insurance other than basic hospital expense, basic medical-surgical
expense, or major medical insurance.
(2) "Insurance"means a contractwhichis an integral part ofaplan
for distributing individual losses whereby one undertakes to indem-
nify another or to pay a specified amount or benefits upon determin-
able contingencies.
(3) "Insurance Department" or "department" means the Insurance
Department established by Code Section 33-2-1.
(4) "Insurer" means any person engaged as indemnitor, surety, or
contractor who issues insurance, annuity or endowment contracts,
subscriber certificates, or other contracts of insurance by whatever
name called. Hospital service nonprofit corporations, nonprofit med-
ical service corporations, burial associations, health care plans, and
health maintenance organizations are insurerswithin the meaningof
this title.
(4.1) "Natural person"means an individual human being and does
not include any firm, partnership, association, corporation, or trust.
(5) "Person" means an individual, insurer, company, association,
trade association, organization, society, reciprocal or interinsurance
exchange, partnership, syndicate, business trust, corporation, Lloyd's
association, and associations, groups, or department ofunderwriters,
and any other legal entity.
(5.1) "Security," "security deposit," "special deposit," or "deposit,"
when used to refer to posted deposits required to be placed in the
2013 Supp. 5
33-1-2 INSURANCE 33-1-2
possession of the Commissioner, shall mean the actual physical
evidence ofa security, such as a certificate, or an entry made through
the federal reserve book-entry system. The federal reserve book-entry
system shall be limited in meaning to the computerized systems
sponsored by the United States Department ofTreasury and certain
agencies and instrumentalities ofthe United States for holding and
transferring securities of the United States government and such
agencies and instrumentalities, respectively, in federal reserve banks
through banks which are members ofthe Federal Reserve System or
which otherwise have access to such computerized systems.
(6) "Transact," with respect to insurance, includes any of the
following:
(A) Solicitation and inducement;
(B) Preliminary negotiations;
(C) Effectuation of a contract ofinsurance; or
(D) Transaction of matters subsequent to effectuation of the
contract and arising out of it. (Code 1933, §§ 56-102, 56-103,
56-104, 56-105, 56-106, 56-107, enacted by Ga. L. 1960, p. 289, § 1;
Ga. L. 1982, p. 3, § 33; Ga. L. 1988, p. 693, § 1; Ga. L. 1989, p.
1119, § 1; Ga. L. 2000, p. 136, § 33; Ga. L. 2003, p. 387, § 1.1; Ga.
L. 2003, p. 872, § 1.)
—
The 2003 amendments. The first amendment, effective July 1, 2003, added
2003 amendment, effective May 30, 2003, paragraph (1.1).
added paragraph (4.1). The second 2003
JUDICIAL DECISIONS
Purpose, effect, contents, and im- vened the very definition of insurance; a
port determine if contract is "insur- reasonable person speaking with any in-
ance." surance agent would not reasonably be-
A contract to underwrite a hole-in-one lieve that an insurance agent has the
give-away by indemnifying the sponsor of authority to provide retroactive coverage,
a golftournament forthe cost ofthe prize Rutlandv. StateFarmMut.Auto. Ins. Co.,
awarded for a hole-in-one on a particular No. 10-10734, 2010 U.S. App. LEXIS
hole was an "insurance" contract. Golf 16744 (11th Cir. Aug. 12, 2010) (Unpub-
Mktg., Inc. v. Atlanta Classic Cars, Inc., lished).
245 Ga. App. 720, 538 S.E—.2d 809 (2000). Sellingmemberships—in automobile
Period of coverage. Mere idea of clubs was "insurance." Based on the
retroactive insurance coverage defied fact that selling memberships in automo-
common sense; according to O.C.G.A. bile clubs was considered "insurance" un-
§ 33-1-2(2), insurance was a contract der O.C.G.A. § 33-1-2(2) and application
which was an integral part of a plan for of the Federal Arbitration Act (FAA), 9
distributing individual losses whereby U.S.C. §§ 1-16, would impair O.C.G.A.
one undertook to indemnify another or to § 9-9-2(c)(3),theMcCarran-FergusonAct,
pay a specified amount or benefits upon 15 U.S.C. §§ 1011-1015, preempted the
determinable contingencies. Coverage for FAA and prohibited enforcement of the
an event that already occurred contra- parties' arbitration agreement. Love v.
6 2013 Supp.