2019 Georgia Code
Title 8 - Buildings and Housing
Chapter 2 - Standards and Requirements for Construction, and Alteration, of Buildings and Other Structures
Article 1 - Buildings Generally
Part 2A - Resolution of Construction Defects
§ 8-2-40. Effect of claimant's acceptance of settlement; subrogation of insurance

Universal Citation: GA Code § 8-2-40 (2019)
  • (a) If a claimant accepts an offer made in compliance with this part and the contractor fulfills the offer in compliance with this part:

    • (1) The claimant shall thereafter be barred from bringing an action for the claim described in the notice of claim; and

    • (2) A contractor's performance of repairs or payment of money to a claimant made pursuant to this Code section shall not, by itself, create insurance coverage or otherwise affect the mutual rights and obligations of the parties under a contractor's liability insurance policy or, by itself, be considered a voluntary payment of an otherwise valid insured loss.

  • (b) An insurer paying a claim under this part shall be subrogated to the rights of the claimant to whom the amounts were paid against the person causing the construction defect, damages, or other reason for payment to the extent that claim payments were made, except that the insurer shall be required to pay any applicable part of costs, expenses, and attorneys' fees incurred in connection therewith.

History:

Code 1981, § 8-2-40, enacted by Ga. L. 2004, p. 500, § 1; Ga. L. 2005, p. 499, § 1/HB 307; Ga. L. 2006, p. 548, § 1/SB 573.

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