Insurance; insurer under a liability policy to pay a third party and the senior lienholder under certain circumstances; provide
Summary
HB220 amends Georgia’s insurance code to require, in certain automobile damage claims, that an insurer paying a third party under a liability policy pay both the third party and any senior lienholder of record, according to their respective interests. If the insurer prepares the loss estimate directly, the estimate must also include a notice warning that using insurance proceeds contrary to a security agreement with a lienholder may violate Georgia theft law and advising the recipient to contact the lending institution with questions.
The bill also clarifies the scope of the existing liability-insurance provision by stating that it applies to automobile or motor vehicle liability policies that pay benefits to a third party for loss-of-use, towing, and storage costs. The act is set to take effect on July 1, 2025, and applies to liability policies issued, delivered, or renewed on or after that date.
Impact
HB220 would amend Code Section 33-7-11.1 in Title 33, Chapter 7 of the Official Code of Georgia Annotated, expanding and clarifying insurer payment obligations when a vehicle damage claim involves a senior lienholder. It would affect insurers, insureds, third-party claimants, and lenders/lienholders by directing payment to both the claimant and the lienholder where applicable, and by requiring a statutory warning on insurer-prepared loss estimates. The bill also updates the applicability language for certain auto liability coverages and supersedes conflicting laws as of its effective date.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears neutral and procedural. The measure is framed as a consumer- and lienholder-protection clarification rather than a controversial policy shift, with no documented opposition or support in the supplied history. Its purpose suggests an effort to standardize claim handling and reduce disputes over insurance proceeds.
Contention
The main point of potential contention is the added administrative and payment burden on insurers, who would be required to identify and pay senior lienholders and include a specific statutory warning on estimates they prepare. On the other side, the bill favors lienholders and lenders by protecting their security interests in vehicle repair or damage proceeds, and it may also affect third-party claimants who receive payments jointly with lienholders. No specific stakeholder objections or endorsements are included in the provided transcripts or vote history.
Creates the child-serving provider liability joint underwriting association to provide a joint underwriting association to provide liability insurance coverage for eligible child serving providers.