SB409: SB409 "Insurers' Use of Aerial or Satellite Images Act"; enact

26 LC 46 1405S (SCS) Senate Bill 409 By: Senators Walker III of the 20th, Harbin of the 16th, Robertson of the 29th, Kirkpatrick of the 32nd, Harbison of the 15th and others AS PASSED SENATE A BILL TO BE ENTITLED AN ACT To amend Chapter 9 of Title 33 of the Official Code of Georgia Annotated, relating to1 regulation of rates, underwriting rules, and related organizati ons, so as to provide for2 homeowner protections with regard to insurance companies' use of aerial or satellite images;3 to provide for definitions; to provide for certain procedures; to require that homeowners be4 allowed 60 days to correct; to provide for regulations; to prov ide for related matters; to5 provide for a short title; to provide for an effective date and applicability; to repeal6 conflicting laws; and for other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 This Act shall be known and may be cited as the "Insurers' Use of Aerial or Satellite Images10 Act."11 SECTION 2.12 Chapter 9 of Title 33 of the Official Code of Georgia Annotated , relating to regulation of13 rates, underwriting rules, and related organizations, is amende d by adding a new Code14 section to read as follows:15 S. B. 409 - 1 - 26 LC 46 1405S (SCS) "33-9-45.16 (a) As used in this Code section, the term:17 (1) 'Admitted insurer' means an insurance company authorized o r licensed to transact18 insurance business within this state.19 (2) 'Adverse underwriting decision' means a declination, cancellation, or nonrenewal of20 residential property insurance coverage. Such term also means a reduction in coverage21 or an increase in premium. Such term does not mean placement o f coverage with an22 insurer that is not an admitted insurer or with the Fair Access to Insurance Requirements23 Plan described in Chapter 33 of this title.24 (3) 'Aerial images' means photographs or other images, except for satellite images, of a25 named insured's residential property captured from an aircraft, drone, balloon, or26 unmanned aerial system.27 (4) 'Nonrenewal' means a refusal by an insurer or an affiliate of an insurer to renew. 28 Failure of an insured to pay the premium as required of the insured for renewal, a change29 in policy terms, or a reduction in coverage after the insurer has manifested a willingness30 to renew by delivering a renewal policy, renewal certificate, or other evidence of renewal31 to the named insured or his or her representative or has offered to issue a renewal policy,32 certificate, or other evidence of renewal or has manifested suc h intention by any other33 means shall not be considered a nonrenewal.34 (5) 'Reduction in coverage' means a change made by an insurer which results in a35 removal of coverage, diminution in the scope of or less coverag e, or the addition of an36 exclusion. Such term shall not include any change, reduction, or elimination of coverage37 made at the request of the insured. The correction of typographical or scrivener's errors38 or the application of mandated legislative changes shall not be considered a reduction in39 coverage.40 (6)(A) 'Renewal' means:41 S. B. 409 - 2 - 26 LC 46 1405S (SCS) (i) Issuance and delivery by an insurer or an affiliate of suc h insurer of a policy42 superseding at the end of the policy period or term a policy pr eviously issued and43 delivered by the same insurer;44 (ii) Issuance and delivery of a certificate or notice extendin g the term of a policy45 beyond its policy period or term; or46 (iii) The extension of the term of a policy beyond its policy period or term pursuant47 to a provision for extending the policy by payment of a continuation premium.48 (B) Any policy with a policy period or term of less than six months shall be considered49 to have successive policy periods or terms ending each six months following its original50 date of issuance and, regardless of its wording, any interim termination by its terms or51 by refusal to accept premiums shall be a cancellation. Any policy written for a period52 or term longer than one year or any policy with no fixed expira tion date shall be53 considered as if written for successive policy periods or terms of one year and any54 termination by an insurer effective on an anniversary date of s uch policy shall be55 deemed a refusal to renew.56 (7) 'Residential property' means real property used or occupied as the primary residence57 of a natural person.58 (8) 'Satellite images' means images of a named insured's resid ential property captured59 from a satellite.60 (9)(A) 'Unmanned aerial system' means a powered, aerial vehicle that:61 (i) Does not carry a human operator and is operated without the possibility of direct62 human intervention from within or on the vehicle;63 (ii) Uses aerodynamic forces to provide vehicle lift;64 (iii) Can fly autonomously or be piloted remotely;65 (iv) Can be expendable or recoverable; and66 (v) Has the ability to photograph.67 (B) Such term does not include a satellite.68 S. B. 409 - 3 - 26 LC 46 1405S (SCS) (b) When utilizing aerial images or satellite images produced by an unmanned aerial69 system or satellite as part of its residential property coverag e, underwriting, or pricing70 determinations, an admitted insurer shall:71 (1) Ensure that a notice of an adverse underwriting decision b y the insurer includes72 copies of date stamped aerial images or satellite images of the property that show the73 specific condition or conditions that are out of compliance with the insurer's underwriting74 guidelines and a description of the steps the property owner ma y take to reverse the75 insurer's adverse underwriting decision, including the specific standards that any repairs76 must adhere to. Such aerial images and satellite images shall have been taken within nine77 months of the issuance of the adverse underwriting decision;78 (2) Establish a point of contact at the insurer and a process for currently insured property79 owners to provide documentation of completion of the required w ork that the insurer80 communicates to the property owner under paragraph (1) of this subsection. Such81 documentation shall be used by the insurer in considering whether to uphold or reverse82 the adverse underwriting decision. Any aerial images or satell ite images submitted by83 the property owner to the insurer shall be of equal or greater resolution and quality as the84 aerial images or satellite images otherwise being relied upon by the insurer to make the85 adverse underwriting decision;86 (3) Establish an appeal process so that the property owner may correct any errors or87 misunderstandings related to the adverse underwriting decision;88 (4) Provide the currently insured property owner a minimum of 60 days to cure the89 condition or conditions underlying an adverse underwriting deci sion from the date the90 insurer identifies the specific condition or conditions, even if the date to cure exceeds the91 nonrenewal notice period provided for in Code Section 33-24-46. An insurer shall have92 the right to assess the work used to correct the condition or conditions to ensure that such93 condition or conditions have been corrected in a manner that me ets the standards94 originally communicated by the insurer under paragraph (1) of this subsection; and95 S. B. 409 - 4 - 26 LC 46 1405S (SCS) (5) Offer a renewal policy or rescission of the insurer's adverse underwriting decision to96 a property owner who submits proof that he or she has cured the condition or conditions97 identified in paragraph (1) of this subsection.98 (c) This Code section is applicable to the Fair Access to Insu rance Requirements Plan99 described in Chapter 33 of this title, as such plan relates to residential properties.100 (d) The Commissioner shall promulgate rules and regulations to enforce this Code section101 which shall determine the method or methods by which insured residential property owners102 shall submit proof of the correction of the condition or condit ions identified in103 paragraph (1) of subsection (b) of this Code section and set fo rth the minimum and104 maximum sizes of the aerial images and satellite images provided for in such paragraph."105 SECTION 3.106 This Act shall become effective on July 1, 2026, and shall appl y to all applicable policies,107 contracts, and certificates executed, delivered, issued for delivery, or renewed in this state108 on or after October 1, 2026.109 SECTION 4.110 All laws and parts of laws in conflict with this Act are repealed.111 S. 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