House Bill: 673

Chair’s Name: Tom Knox

Committee:Insurance

House Sponsor: Bill Hembree

When insurer pays benefits to a 3^rd party on behalf of the insured, the loss estimate must include a warning to the recipient that failure to use the proceeds in accordance with the security agreement may be a violation of the Georgia Code.  The warning must also direct the recipient to contact the lending institution with questions.  The provision will not apply to estimates not prepared in Georgia. This provision will apply to insurance polices issued after January 1, 2009.

Chairman Knox's Opinion of the Legislation:

There has been a problem with individuals obtaining insurance claim funds to repair vehicles damaged in accidents and then not using those funds to make the repairs on vehicles with outstanding loans.