OFFICIAL CODE OF GEORGIA ANNOTATED 2013 Supplement Including Acts ofthe 2013 Regular Session ofthe General Assembly Prepared by The Code Revision Commission The Office ofLegislative Counsel and The Editorial Staff ofLexisNexis® Published Under Authority ofthe State of Georgia Volume 24 2000 Edition Title 33. Insurance (Chapters 1—22) IncludingAnnotations to the Georgia Reports and the GeorgiaAppeals Reports Place in Pocket of Corresponding Volume of Main Set LexisNexis® Charlottesville, Virginia Copykight© 2001—2013 BY The State of Georgia All rights reserved. ISBN 978-0-327-11074-3 (set) ISBN 978-0-327-10147-5 5014430 (Pub.41805) THIS SUPPLEMENT CONTAINS Statutes: All laws specifically codified by the General Assembly ofthe State of Georgia through the 2013 Regular Session ofthe General Assembly. Annotations of Judicial Decisions: Case annotations reflecting decisions posted to LexisNexis® through March 29, 2013. 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American Jurisprudence, Pleading and Practice. American Jurisprudence, ProofofFacts. American Jurisprudence, Trials. Corpus Juris Secundum. Uniform Laws Annotated. American Law Reports, First through Sixth Series. American Law Reports, Federal. Tables: In Volume 41, a Table Eleven-A comparing provisions of the 1976 Constitution ofGeorgia to the 1983 Constitution ofGeorgia and a Table Eleven-B comparing provisions of the 1983 Constitution of Georgia to the 1976 Constitution of Georgia. An updated version of Table Fifteen which reflects legislation through the 2013 Regular Session ofthe General Assembly. iii Indices: A cumulative replacement index to laws codified in the 2013 supple- ment pamphlets and in the bound volumes ofthe Code. Contacting LexisNexis®: Visit our Website at http://www.lexisnexis.com for an online book- store, technical support, customer service, and other company informa- tion. Ifyou have questions or suggestions concerning the Official Code of Georgia Annotated, please write or call toll free 1-800-833-9844, fax at 1-518-487-3584, or email us at [email protected]. Di- rect written inquiries to: LexisNexis® Attn: Official Code of Georgia Annotated 701 East Water Street Charlottesville, Virginia 22902-5389 IV . TITLE 33 INSURANCE VOLUME 24 Chap. 1. General Provisions, 33-1-1 through 33-1-22. 2. Department and Commissioner of Insurance, 33-2-1 through 33-2-33. 3 Authorization and General Requirements for Transaction of Insurance, 33-3-1 through 33-3-30. 4. Actions Against Insurance Companies, 33-4-1 through 33-4-7. 5. Regulation of Unauthorized Insurers, 33-5-1 through 33-5-59. 6. Unfair Trade Practices, 33-6-1 through 33-6-37. 7. Kinds of Insurance; Limits of Risks; Reinsurance, 33-7-1 through 33-7-15. 8. Fees and Taxes, 33-8-1 through 33-8-13. 9. Regulation of Rates, Underwriting Rules, and Related Organizations, 33-9-1 through 33-9-44. 10. Assets and Liabilities, 33-10-1 through 33-10-17. 11. Investments, 33-11-1 through 33-11-89. 13. Insurance Holding Company Systems, 33-13-1 through 33-13-15. 14. Domestic Stock and Mutual Insurers, 33-14-1 through 33-14-109. 15. Fraternal Benefit Societies, 33-15-1 through 33-15-123. 16. Farmers' Mutual Fire Insurance Companies, 33-16-1 through 33-16-22. 19. Nonprofit Hospital Service Corporations, 33-19-1 through 33-19-22. 20A. Managed Health Care Plans, 33-20A-1 through 33-20A-70. 20B. Essential Rural Health Care Provider Access, 33-20B-1 through 33-20B-6. 2013 Supp. 1 T.33 INSURANCE T.33 21. Health Maintenance Organizations, 33-21-1 through 33-21-29. 21A. Medicaid Care Management Organizations, 33-21A- through 33-21A-12. 22. Insurance Premium Finance Companies, 33-22-1 through 33-22-16. VOLUME 25 23. Licensing, 33-23-1 through 33-23-205. 24. Insurance Generally, 33-24-1 through 33-24-98. 25. Life Insurance, 33-25-1 through 33-25-13. 26. Industrial Life Insurance, 33-26-1 through 33-26-7. 27. Group Life Insurance, 33-27-1 through 33-27-9. 28. Annuity and Pure Endowment Contracts, 33-28-1 through 33-28-7. 29. Individual Accident and Sickness Insurance, 33-29-1 through 33-29-22. 29A. Individual Health Insurance Coverage, 33-29A-1 through 33-29A-35. 29B. Health Care Coverage for Children, 33-29B-1 through 33-29B-8. 30. Group or BlanketAccident and Sickness Insurance, 33-30-1 through 33-30-29. 30A. Health Plan Purchasing Cooperatives, 33-30A-1 through 33-30A-11. 30B. Spending Account and Consumer Driven Health Plan Advancement, 33-30B-1 through 33-30B-7. 31. Credit Life Insurance and Credit Accident and Sickness Insurance, 33-31-1 through 33-31-12. 32. Property Insurance, 33-32-1 through 33-32-6. 33. Fair Access to Insurance Requirements, 33-33-1 through 33-33-11. 34. Motor Vehicle Accident Reparations, 33-34-1 through 33-34-9. 34A. Vehicle Protection Product Warranties, 33-34A-1 through 33-34A-13. 2 2013 Supp. T.33 INSURANCE T.33 35. Prepaid Legal Services Plans, 33-35-1 through 33-35-23. 36. Georgia Insurers Insolvency Pool, 33-36-1 through 33-36-20. 37. Insurers Rehabilitation and Liquidation, 33-37-1 through 33-37-58. 38. Georgia Life and Health Insurance Guaranty Association, 33-38-1 through 33-38-22. 39 Collection, Use, and Disclosure of Information Gathered by . Insurance Institutions, 33-39-1 through 33-39-23. 40. Risk Retention Groups, 33-40-1 through 33-40-21. 41. Captive Insurance Companies, 33-41-1 through 33-41-24. 42. Long-Term Care Insurance, 33-42-1 through 33-42-7. 43. Medicare Supplement Insurance, 33-43-1 through 33-43-9. 44. High Risk Health Insurance Plan, 33-44-1 through 33-44-10. 45. Continuing Care Providers and Facilities, 33-45-1 through 33-45-14. 46. Certification of Private Review Agents, 33-46-1 through 33-46-14. 47. Managing General Agents, 33-47-1 through 33-47-7. 48. Producer Controlled Property and Casualty Insurers, 33-48-1 through 33-48-4. 49. Reinsurance Intermediaries, 33-49-1 through 33-49-11. 50. Multiple Employer Self-Insured Health Plans, 33-50-1 through 33-50-14. 51. Georgia Affordable HSA Eligible High Deductible Health Plan, 33-51-1 through 33-51-7. 52. Assumption Reinsurance Agreements, 33-52-1 through 33-52-6. 53. Coverage for Certain Types of Anti-Cancer Drug Therapy, 33-53-1 through 33-53-4. 54. Genetic Testing, 33-54-1 through 33-54-8. 55. Reporting of Transactions by Insurers, 33-55-1 through 33-55-3. 56. Risk-Based Capital Levels, 33-56-1 through 33-56-13. 2013 Supp. 3 . T.33 INSURANCE T.33, C.l 57. Consumers' Insurance Advocate, 33-57-1 through 33-57-8. 58. Charitable Gift Annuities, 33-58-1 through 33-58-6. 59. Life Settlements, 33-59-1 through 33-59-18. 59A. Interstate Insurance Product Regulation Compact, 33-59A-1 through 33-59A-2. 60 Small Business Employee Choice of Benefits Health Insur- ance Plan Act, 33-60-1 through 33-60-6. 61. Regulation ofAutomobile Clubs, 33-61-1 through 33-61-2. 62. Property and Casualty Actuarial Opinion Law, 33-62-1 through 33-62-3. 63. Guaranteed Asset Protection Waivers, 33-63-1 through 33-63-9. 64. Regulation and Licensure of Pharmacy Benefits Managers, 33-64-1 through 33-64-8. — Law reviews. For annual survey Insurance Through Federal Legislation," article on insurance law, see 49 Mercer L. see 44 Ga. L. Rev 511 (2010). For note, Rev. 175 (1997). Forannual survey article "WhenanIdeaisMoreThanJustanIdea: discussing developments in insurance Insurance Coverage of Business Method law, see 51 Mercer L. Rev 313 (1999). For Patent Infringement Suits Under Adver- annual survey article on insurance law, tising Injury Provisions of Commercial see 52 Mercer L. Rev. 303 (2000). General Liability Policies," see 18 J. Fornote, "The ParityCure: SolvingUn- Intell. Prop. L. 631 (2011). equal Treatment ofMental Illness Health CHAPTER 1 GENERAL PROVISIONS Sec. Sec. 33-1-2. Definitions. care cost sharing arrange- 33-1-9. Insurance fraud; venue; pen- ments with participants not alty; exemption. considered insurance company, 33-1-18. Housingtaxcreditforqualified health maintenance organiza- projects; rules and regulations. tion, or health benefit plan. 33-1-19. Special Advisory Commission 33-1-21. Certain subscription agree- onMandatedHealthInsurance ments for prepaid air ambu- Benefits. lance service not contract of 33-1-20. Health care sharing ministry insurance; definitions. denned; health care sharing 33-1-22. English language version of ministry entering into health policy controls. 2013 Supp. 33-1-1 GENERAL PROVISIONS 33-1-2 33-1-1. Short title. RESEARCH REFERENCES Am. J—ur. Pleading and Practice Forms. 14A Am. Jur. Pleading and Practice Forms, Insurance, § 2. 33-1-2. Definitions. As used in this title, the term: (1) "Commissioner of Insurance" or "Commissioner" means the Commissioner ofInsurance ofthe State of Georgia. (1.1) "Health benefit policy," "health benefit plan," or other similar terms do not include limited benefit insurance policies designed, advertised, and marketed to supplement major medical insurance such as accident only, Champus supplement, dental, disability in- come, fixed indemnity, long-term care, Medicare supplement, speci- fied disease, vision, and any other type of accident and sickness insurance other than basic hospital expense, basic medical-surgical expense, or major medical insurance. (2) "Insurance"means a contractwhichis an integral part ofaplan for distributing individual losses whereby one undertakes to indem- nify another or to pay a specified amount or benefits upon determin- able contingencies. (3) "Insurance Department" or "department" means the Insurance Department established by Code Section 33-2-1. (4) "Insurer" means any person engaged as indemnitor, surety, or contractor who issues insurance, annuity or endowment contracts, subscriber certificates, or other contracts of insurance by whatever name called. Hospital service nonprofit corporations, nonprofit med- ical service corporations, burial associations, health care plans, and health maintenance organizations are insurerswithin the meaningof this title. (4.1) "Natural person"means an individual human being and does not include any firm, partnership, association, corporation, or trust. (5) "Person" means an individual, insurer, company, association, trade association, organization, society, reciprocal or interinsurance exchange, partnership, syndicate, business trust, corporation, Lloyd's association, and associations, groups, or department ofunderwriters, and any other legal entity. (5.1) "Security," "security deposit," "special deposit," or "deposit," when used to refer to posted deposits required to be placed in the 2013 Supp. 5 33-1-2 INSURANCE 33-1-2 possession of the Commissioner, shall mean the actual physical evidence ofa security, such as a certificate, or an entry made through the federal reserve book-entry system. The federal reserve book-entry system shall be limited in meaning to the computerized systems sponsored by the United States Department ofTreasury and certain agencies and instrumentalities ofthe United States for holding and transferring securities of the United States government and such agencies and instrumentalities, respectively, in federal reserve banks through banks which are members ofthe Federal Reserve System or which otherwise have access to such computerized systems. (6) "Transact," with respect to insurance, includes any of the following: (A) Solicitation and inducement; (B) Preliminary negotiations; (C) Effectuation of a contract ofinsurance; or (D) Transaction of matters subsequent to effectuation of the contract and arising out of it. (Code 1933, §§ 56-102, 56-103, 56-104, 56-105, 56-106, 56-107, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 1982, p. 3, § 33; Ga. L. 1988, p. 693, § 1; Ga. L. 1989, p. 1119, § 1; Ga. L. 2000, p. 136, § 33; Ga. L. 2003, p. 387, § 1.1; Ga. L. 2003, p. 872, § 1.) — The 2003 amendments. The first amendment, effective July 1, 2003, added 2003 amendment, effective May 30, 2003, paragraph (1.1). added paragraph (4.1). The second 2003 JUDICIAL DECISIONS Purpose, effect, contents, and im- vened the very definition of insurance; a port determine if contract is "insur- reasonable person speaking with any in- ance." surance agent would not reasonably be- A contract to underwrite a hole-in-one lieve that an insurance agent has the give-away by indemnifying the sponsor of authority to provide retroactive coverage, a golftournament forthe cost ofthe prize Rutlandv. StateFarmMut.Auto. Ins. Co., awarded for a hole-in-one on a particular No. 10-10734, 2010 U.S. App. LEXIS hole was an "insurance" contract. Golf 16744 (11th Cir. Aug. 12, 2010) (Unpub- Mktg., Inc. v. Atlanta Classic Cars, Inc., lished). 245 Ga. App. 720, 538 S.E—.2d 809 (2000). Sellingmemberships—in automobile Period of coverage. Mere idea of clubs was "insurance." Based on the retroactive insurance coverage defied fact that selling memberships in automo- common sense; according to O.C.G.A. bile clubs was considered "insurance" un- § 33-1-2(2), insurance was a contract der O.C.G.A. § 33-1-2(2) and application which was an integral part of a plan for of the Federal Arbitration Act (FAA), 9 distributing individual losses whereby U.S.C. §§ 1-16, would impair O.C.G.A. one undertook to indemnify another or to § 9-9-2(c)(3),theMcCarran-FergusonAct, pay a specified amount or benefits upon 15 U.S.C. §§ 1011-1015, preempted the determinable contingencies. Coverage for FAA and prohibited enforcement of the an event that already occurred contra- parties' arbitration agreement. Love v. 6 2013 Supp.