HB1421: HB1421 Insurance; prohibit improper steering to repair facilities under motor vehicle liability insurance policies

26 LC 52 1048 House Bill 1421 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 prohibit2 improper steering to repair facilities under motor vehicle liab ility insurance policies; to3 provide for unfair claims settlement practices; to provide for the selection of a repair facility;4 to provide for payment for repairs; to provide for certain disc losures and notifications; to5 provide for definitions; to provide for rules and regulations; to provide for related matters;6 to repeal conflicting laws; and for other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Chapter 6 of Title 33 of the Official Code of Georgia Annotated , relating to unfair trade10 practices, is amended by revising paragraphs (15) and (16) in Code Section 33-6-34, relating11 to unfair claims settlement practices, as follows:12 "(15) Failure to comply with any insurer requirement in Chapter 20E of this title, the13 'Surprise Billing Consumer Protection Act,' including:14 H. B. 1421 - 1 - 26 LC 52 1048 (A) The failure to designate whether the healthcare plan is su bject to the exclusive15 jurisdiction of the Employee Retirement Income Security Act of 1974, 29 U.S.C. Sec.16 1001, et seq.;17 (B) The failure to directly pay the provider or facility withi n 15 working days for18 electronic claims or 30 calendar days for paper claims any mone ys due under Code19 Section 33-20E-4 or 33-20E-5; or20 (C) The failure to pay a resolution organization as required u nder Code Section21 33-20E-16; and22 (16) Failure to comply with any insurer requirement relating to emergency services or23 care in Article 4 of Chapter 11 of Title 31, Article 1 of Chapter 20A of this title, Chapter24 20E of this title, Chapter 21A of this title, Code Section 33-24-59.27, and Chapter 30 of25 this title; and26 (17) Failure to comply with any insurer requirement relating t o steering to repair27 facilities under motor vehicle liability insurance policies as provided under Code Section28 33-34-6."29 SECTION 2.30 Chapter 34 of said title, relating to motor vehicle accident re parations, is amended by31 revising Code Section 33-34-6, relating to selection of motor v ehicle repair facility, as32 follows:33 "33-34-6.34 (a) Subject to the provisions of subsection (b) of this Code s ection, no insurer shall35 represent to a person making a claim under a motor vehicle insurance policy that the use36 of or the failure to use a particular repair facility or particular repair facilities may result37 in the nonpayment of a claim.38 (b) No insurer shall require a person making a claim under a m otor vehicle insurance39 policy to use a particular repair facility or particular repair facilities in order to settle a40 H. B. 1421 - 2 - 26 LC 52 1048 claim if the person making the claim can obtain the repair work on the motor vehicle at the41 same cost from another source.42 (a) As used in this Code section, the term:43 (1) 'Claimant' means either a first-party claimant or insured or a third-party claimant who44 asserts a claim for payment, benefits, reimbursement, or damages under a motor vehicle45 liability insurance policy arising out of, based on, or in any way related to a motor vehicle46 collision, loss, ownership, maintenance, or use. Such term inc ludes any assignee,47 subrogee, or legal representative of a first-party claimant or third-party claimant to the48 extent such assignee, subrogee, or legal representative asserts the claim.49 (2) 'Financial interest' means any stake of monetary value, direct or indirect, in an entity. 50 Such term includes any ownership interest, direct repair program, affiliation agreement,51 favored facility agreement, labor rate agreement, parts agreeme nt, or service level52 agreement.53 (3) 'Motor vehicle liability insurance' means motor vehicle insurance that covers the use54 of a motor vehicle and its operating equipment; covers liability, collision, comprehensive,55 personal injury protection or medical payments, or uninsured or underinsured motorist56 protection; or provides the mandatory minimum limits required under this chapter for the57 personal use of a private passenger automobile. Such term includes coverage provided58 through an approved plan or certificate of self-insurance to the extent recognized under59 state law as satisfying such minimum limits.60 (4) 'Repair facility' means a motor vehicle dealer, garage, bo dy shop, or other61 commercial entity which undertakes the repair or replacement of parts of a motor vehicle.62 (b) All policies of motor vehic le liability insurance shall al low a claimant under such63 policy to select the repair facility to provide repairs covered under such policy. No insurer64 shall require a claimant under such policy to use a repair facility in which such insurer has65 a financial interest. No insurer shall represent to a claimant under such policy that the use66 of or the failure to use a particular repair facility or partic ular repair facilities may result67 H. B. 1421 - 3 - 26 LC 52 1048 in nonpayment or delayed or reduced payment of a claim or less quality or timeliness of68 repair under a claim. The amount determined to be payable under a motor vehicle liability69 insurance policy shall be paid regardless of the repair facility selected by a claimant.70 (c) No insurer shall recommend the use of a particular repair facility without clearly71 informing a claimant under a motor vehicle liability insurance policy of the following:72 (1) The claimant is under no obligation to use the recommended repair facility;73 (2) The claimant may use a repair facility of the claimant's choice;74 (3) The amount determined by the insurer to be payable under such policy will be paid75 regardless of whether or not the claimant uses the recommended repair facility; and76 (4) Whether or not the insurer has a financial interest in the recommended repair facility.77 (d) A violation of this Code section that occurs with such fre quency as to constitute a78 general business practice shall be a violation of Article 2 of Chapter 6 of this title, the79 'Unfair Claims Settlement Practices Act.'80 (e) The Commissioner shall promulgate rules and regulations necessary to implement this81 Code section."82 SECTION 3.83 All laws and parts of laws in conflict with this Act are repealed.84 H. B. 1421 - 4 -