HB1420: HB1420 Insurance; original equipment manufacturer repair procedures for repairs under motor vehicle liability insurance policies; provide

26 LC 52 1049 House Bill 1420 By: Representatives Franklin of the 160th, Stephens of the 164th, Ridley of the 6th, Gullett of the 19th, Gambill of the 15th, and others A BILL TO BE ENTITLED AN ACT To amend Chapters 6 and 34 of Title 33 of the Official Code of Georgia Annotated, relating1 to unfair trade practices and motor vehicle accident reparations, respectively, so as to provide2 for original equipment manufacturer repair procedures for repai rs under motor vehicle3 liability insurance policies; to provide for unfair claims settlement practices; to provide for4 definitions; to provide for rules and regulations; to provide f or related matters; to repeal5 conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Chapter 6 of Title 33 of the Official Code of Georgia Annotated , relating to unfair trade9 practices, is amended by revising paragraphs (15) and (16) in Code Section 33-6-34, relating10 to unfair claims settlement practices, as follows:11 "(15) Failure to comply with any insurer requirement in Chapter 20E of this title, the12 'Surprise Billing Consumer Protection Act,' including:13 (A) The failure to designate whether the healthcare plan is su bject to the exclusive14 jurisdiction of the Employee Retirement Income Security Act of 1974, 29 U.S.C. Sec.15 1001, et seq.;16 H. B. 1420 - 1 - 26 LC 52 1049 (B) The failure to directly pay the provider or facility withi n 15 working days for17 electronic claims or 30 calendar days for paper claims any mone ys due under Code18 Section 33-20E-4 or 33-20E-5; or19 (C) The failure to pay a resolution organization as required u nder Code20 Section 33-20E-16; and21 (16) Failure to comply with any insurer requirement relating to emergency services or22 care in Article 4 of Chapter 11 of Title 31, Article 1 of Chapt er 20A of this title,23 Chapter 20E of this title, Chapter 21A of this title, Code Sect ion 33-24-59.27, and24 Chapter 30 of this title; and25 (17) Failure to comply with any insurer requirement relating t o original equipment26 manufacturer repair procedures under motor vehicle liability in surance policies as27 provided under Code Section 33-34-10."28 SECTION 2.29 Chapter 34 of said title, relating to motor vehicle accident reparations, is amended by adding30 a new Code section to read as follows:31 "33-34-10.32 (a) As used in this Code section, the term:33 (1) 'Claimant' means either a first-party claimant or insured or a third-party claimant who34 asserts a claim for payment, benefits, reimbursement, or damages under a motor vehicle35 liability insurance policy arising out of, based on, or in any way related to a motor vehicle36 collision, loss, ownership, maintenance, or use. Such term incl udes any assignee,37 subrogee, or legal representative of a first-party claimant or third-party claimant to the38 extent such assignee, subrogee, or legal representative asserts the claim.39 (2) 'Motor vehicle liability insurance' means motor vehicle insurance that covers the use40 of a motor vehicle and its operating equipment; covers liability, collision, comprehensive,41 personal injury protection or medical payments, or uninsured or underinsured motorist42 protection; or provides the mandatory minimum limits required under this chapter for the43 H. B. 1420 - 2 - 26 LC 52 1049 personal use of a private passenger automobile. Such term includes coverage provided44 through an approved plan or certificate of self-insurance to the extent recognized under45 state law as satisfying such minimum limits.46 (3) 'Original equipment manufacturer repair procedure' means a ny written, electronic,47 or published repair standard, procedure, specification, or dire ctive issued by a motor48 vehicle's original equipment manufacturer, including, but not l imited to, body, frame,49 structural, mechanical, electronic, scanning, calibration, and refinishing operations.50 (4) 'Repair facility' means a motor vehicle dealer, garage, bo dy shop, or other51 commercial entity which undertakes the repair or replacement of parts of a motor vehicle.52 (b) All policies of motor vehicle liability insurance shall provide for all repairs to be made53 in accordance with the applicable original equipment manufacturer repair procedures.54 (c) No insurer that issues, delivers, issues for delivery, or renews a motor vehicle liability55 insurance policy shall require a claimant to deviate from or de ny, omit, or disregard56 original equipment manufacturer repair procedures.57 (d) An insurer that issues, delivers, issues for delivery, or renews a motor vehicle liability58 insurance policy shall:59 (1) Approve any original equipment manufacturer repair procedure that is documented60 in a written estimate or supplemental estimate from a repair facility or in a written request61 from a repair facility or claimant when the applicable original equipment manufacturer62 service publication, position statement, or procedure is identified; and63 (2) Only deny reimbursement for a documented original equipment manufacturer repair64 procedure if, within three business days of receipt of the written estimate, supplemental65 estimate, or written request provided for in paragraph (1) of this subsection, such insurer66 provides to the claimant:67 (A) A written itemized explanation for such denial, including, but not limited to, policy68 coverage limitations, prior payment, duplication, or unrelated to loss, specific to the69 original equipment manufacturer repair procedure; and70 H. B. 1420 - 3 - 26 LC 52 1049 (B) Notice that such denial might constitute an unfair claims settlement practice under71 state law.72 (e) A violation of this Code section that occurs with such fre quency as to constitute a73 general business practice shall be a violation of Article 2 of Chapter 6 of this title, the74 'Unfair Claims Settlement Practices Act.'75 (f) The Commissioner shall promulgate rules and regulations necessary to implement this76 Code section."77 SECTION 3.78 All laws and parts of laws in conflict with this Act are repealed.79 H. B. 1420 - 4 -