Bill Text: GA HB656 | 2009-2010 | Regular Session | Introduced
Bill Title: Religious organizations; qualify as a self-insurer; provisions
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2010-07-01 - Effective Date [HB656 Detail]
Download: Georgia-2009-HB656-Introduced.html
10 LC 35
1361/AP
House
Bill 656 (AS PASSED HOUSE AND SENATE)
By:
Representatives Barnard of the
166th
and Lane of the
158th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 34 of Title 33 of the Official Code of Georgia Annotated, relating
to motor vehicle accident reparations, so as to provide that a religious
organization that meets certain requirements may quality as a self-insurer; to
provide additional qualifications; to provide for forms of acceptable minimum
security; to provide for cancellation of the certificate; to provide for related
matters; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
34 of Title 33 of the Official Code of Georgia Annotated, relating to motor
vehicle accident reparations, is amended by revising Code Section 33-34-5.1,
relating to self-insurers, as follows:
"33-34-5.1.
(a)(1)
Except as otherwise provided in paragraphs (2) and (3) of this subsection, any
person in whose name one or more vehicles are registered in this state may
qualify as a self-insurer by obtaining a certificate of self-insurance from the
Commissioner of Insurance. The Commissioner of Insurance may, in his or her
discretion, upon the application of such person, issue such a certificate when
he or she is satisfied that such person has and will continue to have the
ability to provide coverages, benefits, and claims-handling procedures
substantially equivalent to those afforded by a policy of vehicle insurance in
compliance with
Chapter 34
of Title 33
this
chapter.
(2)
Except as otherwise provided in paragraph (3) of this subsection with regard to
taxicabs, any person who operates one or more vehicles for hire which transport
passengers and in whose name a certificate of title has been issued pursuant to
Chapter 3 of this title on one or more such vehicles may qualify as a
self-insurer by obtaining a certificate of self-insurance from the Commissioner
of Insurance. The Commissioner of Insurance may, in his or her discretion, upon
the application of such person, issue such a certificate when he or she is
satisfied that such person has and will continue to have the ability to provide
coverages, benefits, and claims-handling procedures substantially equivalent to
those afforded by a policy of vehicle insurance in compliance with
Chapter 34
of Title 33
this
chapter.
(3)(A)
As used in this paragraph, the term 'taxicab' means a motor vehicle used to
transport passengers for a fare and which is fitted with a taximeter to compute
such fare.
(B)
Any person who operates 25 or more taxicabs and in whose name such vehicles are
registered may qualify as a self-insurer by obtaining a certificate of
self-insurance from the Commissioner of Insurance. The Commissioner of
Insurance may, in his or her discretion, upon the application of such person,
issue such a certificate when he or she is satisfied that such person has and
will continue to have the ability to provide coverages, benefits, and
claims-handling procedures substantially equivalent to those afforded by a
policy of vehicle insurance in compliance with
Chapter 34
of Title 33
this
chapter. A person who operates fewer than
25 taxicabs and in whose name such vehicles are registered shall not be allowed
to qualify as a self-insurer with regard to such vehicles.
(C)
Except as otherwise provided in subparagraph (D) of this paragraph, on or after
July 1, 1994, to qualify for a certificate of self-insurance under subparagraph
(B) of this paragraph, a person shall maintain with the Commissioner a cash
deposit of at least $100,000.00 and shall also possess and thereafter maintain
an additional amount of at least $300,000.00 which shall be invested in the
types of assets described in subparagraphs (A) through (H) of Code Section
33-11-5 and Code Sections 33-11-10, 33-11-14.1, 33-11-20, 33-11-21, and
33-11-25, which relate to various types of authorized investments for
insurers.
(D)
Any person operating as a self-insurer pursuant to a certificate of
self-insurance issued prior to July 1, 1994, shall be allowed a transition
period in which to meet the requirements of subparagraph (C) of this paragraph;
provided, however, that, except as provided in subparagraph (G) of this
paragraph, on and after December 31, 1995, all self-insurers under this
paragraph shall comply fully with the requirements of subparagraph (C) of this
paragraph. The Commissioner of Insurance shall promulgate rules and regulations
relative to the transition period for compliance provided in this
subparagraph.
(E)
Beginning July 1, 1994, and each year thereafter, a person operating as a
self-insurer pursuant to this paragraph shall submit to the Commissioner of
Insurance, on forms prescribed by the Commissioner, reports of the business
affairs and operations of the self-insurer in the same manner as required of
insurers pursuant to Code Section 33-3-21. A person operating as a
self-insurer pursuant to this paragraph shall also submit to the Commissioner an
annual financial statement audited by an independent certified public
accountant. The value of any asset listed in any report required by this
subparagraph shall be limited to the equity interest of the person operating as
a self-insurer pursuant to this paragraph.
(F)
Any person operating as a self-insurer pursuant to this paragraph shall be
subject to examination and proceedings in the same manner applicable to insurers
transacting motor vehicle insurance in this state as provided in Chapter 2 of
Title 33 and shall maintain reserves for losses in the same manner as insurers
transacting motor vehicle insurance as provided in Chapter 10 of Title
33.
(G)
Until December 31, 2003, the provisions of subparagraph (C) of this paragraph
shall not apply to taxicab self-insurers which were located in counties with
populations of 400,000 or less according to the United States decennial census
of 1990 or any future such census and were licensed by the Commissioner of
Insurance on December 31, 1998.
(b)(1)
In addition to the persons described in subsection (a) of this Code section, a
religious organization that meets the requirements of this subsection may
qualify as a self-insurer for motor vehicle liability insurance for all motor
vehicles registered in this state that are owned or leased by members of such
religious organization that obtains a certificate from the Commissioner. The
Commissioner may, in his or her discretion, upon the application of such
religious organization, issue a certificate when he or she is satisfied that
such religious organization meets the qualifications of this subsection and has
and will continue to have the ability to provide coverages, benefits, and
claims-handling procedures substantially equivalent to those afforded by a
policy of vehicle insurance in compliance with this chapter.
(2)
In addition to any other rules or regulations established by the Commissioner, a
religious organization seeking to obtain a certificate under the provisions of
this subsection shall meet the following qualifications:
(A)
The religious organization shall be a recognized sect or division of a
recognized religious group having established tenets or teachings and shall have
remained in existence continuously since December 31, 1950, and whose members
hold a common belief in mutual financial assistance in time of
need;
(B)
The religious organization shall be a recognized sect or division of a religious
group which has been a recognized religious group for purposes of exemption from
federal social security and medicare taxes since December 31, 1970;
and
(C)
The religious organization has filed with the Commissioner the required minimum
security. The required minimum security shall in no event be less than the
following amounts:
Number
of Vehicles
|
Required
Security
|
1-50
|
$150,000.00
|
51-100
|
$200,000.00
|
101-150
|
$300,000.00
|
151-200
|
$350,000.00
|
201-250
|
$400,000.00
|
251-350
|
$500,000.00
|
351
or more
|
$600,000.00
|
(3)
The only forms of acceptable required minimum security shall be rendered in one
or more of the following forms:
(A)
United States currency placed as collateral with the Commissioner;
(B)
Irrevocable letters of credit valid for a period of at least 24 months and
renewable every 12 months and issued by a financial institution chartered by an
agency of this state or the federal government; or
(C)
Bonds or other negotiable obligations issued by this state, or a subdivision or
instrumentality of this state, if not in default as to principal or
interest.
(4)
A certificate issued pursuant to this subsection shall be valid for a period of
12 months and may be renewed upon the religious organization's filing of an
appropriate application, including a report of all claims incurred during the
preceding calendar year, the number of covered motor vehicles, and proof that
the organization continues to meet the requirements of this subsection. If,
based upon the number of claims incurred by the organization during the
preceding calendar year or the number of covered motor vehicles, the
Commissioner determines that the required minimum security under this subsection
is inadequate, the Commissioner may require additional minimum security or
reports, or both.
(b)(c)
Upon a determination that any
self-insurer,
including a religious organization granted a certificate pursuant to subsection
(b) of this Code section, has failed to
pay on any valid claim within 30 days of its submission or has failed to satisfy
any judgment within 30 days after such judgment shall become final, the
Commissioner of Insurance shall revoke such insurer's certificate. The
Commissioner of Insurance may on reasonable grounds cancel a certificate of
self-insurance,
including a certificate granted pursuant to subsection (b) of this Code
section, and is authorized to promulgate
rules and regulations prescribing such grounds for the cancellation of such
certificates."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.