2020 Georgia Code
Title 33 - Insurance
Chapter 24 - Insurance Generally
Article 1 - General Provisions
§ 33-24-47. Notice Required of Termination or Nonrenewal, Increase in Premium Rates, or Change Restricting or Reducing Coverage; Failure of Insurer to Comply

1. Each insurer licensed to transact business in this state which issues or issues for delivery in this state policies or contracts of insurance insuring risks or residents in this state and insuring against liability for loss of, damage to, or injury to persons or property shall comply with the provisions of this Code section.This Code section shall not apply to personal automobile or personal property and casualty insurance policies.Cancellation of a policy for failure of the named insured to discharge when due any obligations in connection with the payment of premiums or cancellation for any reason of a policy that has been in effect for less than 60 days shall be governed by the provisions of Code Section 33-24-44.
2. A notice of termination, including a notice of cancellation or nonrenewal, by the insurer or a notice of an increase in premiums, other than an increase in premiums due to a change in risk or exposure, including a change in experience modification or resulting from an audit of auditable coverages, which exceeds 15 percent of the current policy's premium, shall be delivered to the insured as provided in subsection (d) of Code Section 33-24-14, in person, or by depositing the notice in the United States mail, to be dispatched by at least first-class mail to the last address of record of the insured, at least 45 days prior to the termination date of such policy; provided, however, that a notice of cancellation or nonrenewal of a policy of workers' compensation insurance shall be controlled by the provisions of subsection (f) of this Code section. In those instances where an increase in premium exceeds 15 percent, the notice to the insured shall indicate the dollar amount of the increase. The insurer may obtain a receipt provided by the United States Postal Service as evidence of mailing such notice or such other evidence of mailing as prescribed or accepted by the United States Postal Service.
3. The failure of an insurer to comply with the requirements of subsection (b) of this Code section shall entitle the policyholder to purchase, under the same premiums and policy terms and conditions, an additional 30 day period of insurance coverage beyond the termination date of such policy; provided, however, that the policyholder shall tender the premium amount, computed on a pro rata basis, to the insurer on or before the termination date. No provision of this Code section shall be construed as requiring the insurance coverage under a policy to be extended for more than 30 days from the termination date stated in such policy. An insurer shall not be subject to any other penalty for the failure to comply with the requirements of subsection (b) of this Code section unless the Commissioner finds, after a hearing, that such noncompliance by the insurer has occurred with such frequency as to indicate a general business practice by the insurer of noncompliance with subsection (b) of this Code section. There shall be no liability on the part of and no cause of action of any nature shall arise against the Commissioner or the Commissioner's employees or against any insurer, its authorized representatives, its agents, its employees, or any firm, person, or corporation furnishing to the insurer information as to reasons for cancellation or nonrenewal for any statement made by any of them and in written notice of cancellation or nonrenewal or in any other communication, oral or written, specifying the reasons for cancellation or nonrenewal or providing information pertaining thereto or for statements made or evidence submitted at any formal or informal hearing conducted in connection therewith.
4. This Code section shall not apply to policies canceled in accordance with the provisions of Chapter 22 of this title.
5. Cancellation by the insured shall be accomplished in accordance with Code Section 33-24-44.1.
6. A notice of cancellation or nonrenewal of a policy of workers' compensation insurance shall be dispatched to the insured as provided in subsection (d) of Code Section 33-24-14 or by certified mail or statutory overnight delivery, return receipt requested, to the last address of record of the insured at least 75 days prior to the termination date of such policy. The workers' compensation insurer shall retain the receipt of mailing provided by the United States Postal Service as evidence of mailing unless such mailing was accomplished as provided in subsection (d) of Code Section 33-24-14.
7. An insurer shall provide a written notice of a reduction in coverage to the named insured no less than 45 days prior to the effective date of the proposed reduction in coverage; provided that such notice shall be in a separate document with the words "NOTICE OF REDUCTION IN COVERAGE" written in all capital letters in at least 12 point type. Such notice shall be delivered to the insured as provided in subsection (d) of Code Section 33-24-14, in person, or by depositing the notice in the United States mail, to be dispatched by at least first-class mail to the last address of record of the insured. A reduction in coverage shall mean a change made by the insurer which results in a removal of coverage, diminution in scope or less coverage, or the addition of an exclusion. Reduction in coverage shall not include any change, reduction, or elimination of coverage made at the request of the insured. The correction of typographical or scrivener's errors or the application of mandated legislative changes shall not be considered a reduction in coverage.

(Code 1981, §33-24-47, enacted by Ga. L. 1986, p. 695, § 1; Ga. L. 1987, p. 1466, §§ 5, 6; Ga. L. 1993, p. 1507, § 2; Ga. L. 1996, p. 705, § 16; Ga. L. 2000, p. 1589, § 3; Ga. L. 2014, p. 829, §§ 11, 12/HB 645; Ga. L. 2015, p. 5, § 33/HB 90; Ga. L. 2018, p. 210, § 3/HB 760; Ga. L. 2019, p. 474, § 7/SB 156.)

The 2018 amendment, effective July 1, 2018, in subsection (b), in the first sentence, substituted "insurer or a notice" for "insurer, a notice" near the beginning and deleted "or a notice of change in any policy provision which limits or restricts coverage" following "policy's premium," in the middle; and added subsection (g).

The 2019 amendment, effective July 1, 2019, substituted "shall be in a separate document with the words 'NOTICE OF REDUCTION IN COVERAGE' written in all capital letters in at least 12 point type" for "shall be printed in all capital letters in a separate document entitled 'NOTICE OF REDUCTION IN COVERAGE.'" in the proviso of the first sentence of subsection (g).

- The former Code Section 33-24-47 was based on Code 1933, § 56-2430.1, enacted by Ga. L. 1964, p. 335, § 1; Code 1933, § 56-2430.2, as redesignated by Ga. L. 1968, p. 1126, § 1; and Ga. L. 1977, p. 877, § 1, relating to cancellation or nonrenewal of policies in which interests of lienholders were protected by loss payable clauses, and was repealed by Ga. L. 1984, p. 1345, § 7, effective July 1, 1984.

Ga. L. 1993, p. 1507, § 1, not codified by the General Assembly, provides: "This Act shall be known and may be cited as the 'Small Business Protection Act of 1993.' "

Ga. L. 2000, p. 1589, § 16, not codified by the General Assembly, provides that the amendment to subsection (f) is applicable with respect to notices delivered on or after July 1, 2000.

- For note on 1993 amendment of this Code section, see 10 Ga. St. U.L. Rev. 152 (1993). For review of 1996 department and commissioner of insurance legislation, see 13 Ga. St. U.L. Rev. 183 (1996).

JUDICIAL DECISIONS

Mortgagee entitled to sue on policy when no notice of nonrenewal given.

- When the loss payee, first mortgagee of the destroyed premises, never received notice that the insurance policy had not been renewed and did not know that the premises were therefore uninsured, the loss payee was not precluded from recovering for the damages to the premises under the policy since the insurance company had failed to follow the applicable notice provisions. Waco Fire & Cas. Ins. Co. v. Jones, 180 Ga. App. 26, 348 S.E.2d 547 (1986).

- Workers' compensation insurer was not required to give notice to the insured when the insurer had offered to renew a policy and coverage was terminated because of nonpayment of the renewal premium. Riley v. Taylor Orchards, 226 Ga. App. 394, 486 S.E.2d 617 (1997).

RESEARCH REFERENCES

Am. Jur. 2d.

- 43 Am. Jur. 2d, Insurance, § 378 et seq.

- Rights as between mortgagor and insurance company where policy avoided as to mortgagor, but not as to mortgagee, 52 A.L.R. 278.

Right to proceeds of insurance where loss occurs after mortgage foreclosure sale, but during redemption period, 52 A.L.R. 898.

Insured's ratification, after loss, of policy procured without his authority, knowledge, or consent, 52 A.L.R.3d 235.

What constitutes waiver by insured or insured's agent of required notice of cancellation of insurance policy, 86 A.L.R.4th 886.