Georgia Gov. Nathan Deal is expected to sign into law a bill requiring that certificate of insurance forms be filed with and authorized by the state insurance commissioner.
Agent groups and insurance businesses have experienced longstanding issues with certificates which are frequently utilized to falsely show proof of coverage or amend the policy to consist of provisions outside the terms of the certificate holders’ policy.
In January, Insurance Commissioner Ralph Hudgens issued a directive restating that certificates are for info purposes only and confer no rights on the certificate holders away from terms of their policies. The directive also reminded agents and policyholders that the intentional misuse of certificate is against the law.
Following Hudgens’ action, the Independent Insurance Agents of Georgia and Expert Agents of Georgia produced some pot job force to assist turn the directive into legislation. “This legislation is extremely essential to our members,” stated Gould Hagle, lobbyist for the Independent Insurance Agents of Georgia. “Its passage will be the culmination of the full year’s function.”
The balance (HB66) was sponsored by Rep. Maxwell Howard and approved by both the Georgia Home of Representatives and Senate, prior to becoming sent to Gov. Deal for his signature.
The bill clarifies that the certificate is really a synopsis of coverage as it exists on the date the certificate is disseminated and it is only intended for informational purposes. The balance also spells out that a certificate isn't an insurance coverage contract or perhaps a document that alters coverage.
If signed as expected by Deal, the bill will make two substantive modifications to present law. Additionally to requiring that certificate forms to be filed with and approved by the insurance commissioner, the brand new law locations certificate holders underneath the regulatory authority of the commissioner to ensure that any violations could be covered under the state’s insurance code.
Agent groups and insurance businesses have experienced longstanding issues with certificates which are frequently utilized to falsely show proof of coverage or amend the policy to consist of provisions outside the terms of the certificate holders’ policy.
In January, Insurance Commissioner Ralph Hudgens issued a directive restating that certificates are for info purposes only and confer no rights on the certificate holders away from terms of their policies. The directive also reminded agents and policyholders that the intentional misuse of certificate is against the law.
Following Hudgens’ action, the Independent Insurance Agents of Georgia and Expert Agents of Georgia produced some pot job force to assist turn the directive into legislation. “This legislation is extremely essential to our members,” stated Gould Hagle, lobbyist for the Independent Insurance Agents of Georgia. “Its passage will be the culmination of the full year’s function.”
The balance (HB66) was sponsored by Rep. Maxwell Howard and approved by both the Georgia Home of Representatives and Senate, prior to becoming sent to Gov. Deal for his signature.
The bill clarifies that the certificate is really a synopsis of coverage as it exists on the date the certificate is disseminated and it is only intended for informational purposes. The balance also spells out that a certificate isn't an insurance coverage contract or perhaps a document that alters coverage.
If signed as expected by Deal, the bill will make two substantive modifications to present law. Additionally to requiring that certificate forms to be filed with and approved by the insurance commissioner, the brand new law locations certificate holders underneath the regulatory authority of the commissioner to ensure that any violations could be covered under the state’s insurance code.
0 comments
Post a Comment