House Bill 220
By: Representatives Momtahan of the 17th, Carpenter of the 4th, Gunter of the 8th, and New
of the 40th
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 7 of Title 33 of the Official Code of Georgia Annotated, relating to kinds
of insurance, limits of risks, and reinsurance, so as to provide for an insurer under a liability
insurance policy to pay a third party and the senior lienholder under certain circumstances;
to provide for an effective date and applicability; 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 7 of Title 33 of the Official Code of Georgia Annotated, relating to kinds of
insurance, limits of risks, and reinsurance, is amended in Code Section 33-7-11.1, relating
to commencement of liability of insurer to pay benefits to third party on behalf of insured and
applicability of the Code section, by revising subsections (c) and (d) as follows:
"(c) When making any payment to a third party for damage to an automobile for any loss,
the insurer <ins>shall pay the third party and the senior lienholder of record, if any, as their
interests may appear on the records of ownership and</ins> shall have printed on the loss
estimate, if prepared directly by the insurer, the following:
'Failure to use the insurance proceeds in accordance with a security agreement between
you and a lienholder, if any, may be a violation of Code Section 16-8-4 of the O.C.G.A.
If you have any questions, contact your lending institution.'
This subsection does not apply if the insurer does not prepare the loss estimate or if the
estimate is not prepared in the State of Georgia.
(d) The provisions of this Code section shall be applicable to all automobile liability or
motor vehicle liability insurance policies that pay benefits to a third party on behalf of an
insured for the loss of use and towing and storage costs of such motor vehicle issued,
delivered, or renewed in this state on or after January 1, 2009."
SECTION 2.
This Act shall become effective on July 1, 2025, and shall apply to all liability insurance
policies issued, delivered, issued for delivery, or renewed in this state on or after such date.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.