TITLE 33 INSURANCE

Section 24. Insurance Generally, 33-24-1 through 33-24-98.

ARTICLE 1 GENERAL PROVISIONS

33-24-14. Delivery of policies; applicability of Uniform Electronic Transactions Act; additional mailings.

1. Subject to the insurer's requirement as to payment of premiums, every policy shall be mailed or delivered to the insured or to the person entitled to the policy within a reasonable period of time after its issuance except where a condition required by the insurer has not been met by the insured.
2. A policy required to be delivered under this subsection may be delivered by electronic transmittal in accordance with Chapter 12 of Title 10, the "Uniform Electronic Transactions Act," or by electronic posting if that policy is posted electronically, provided that:
  1. The insured has agreed to accept delivery by electronic posting;
  2. The insurer makes the policy accessible as long as the policy is in force;
  3. After the expiration of the policy, the insurer archives its expired policies for a period of five years and makes them available upon request;
  4. The insurer provides the following information in or simultaneously with each declarations page provided at the time of issuance of the initial policy and any renewals of that policy:
    1. A description of the exact policy and endorsement forms purchased by the insured;
    2. A method by which the insured may obtain, upon request and without charge, a paper copy of such insured's policy; and
    3. The Internet address where the insured's policy and endorsement are posted; and
  5. The insurer provides notice, in the manner in which the insurer customarily communicates with the insured, of any changes to the forms or endorsements, the insured's right to obtain, upon request and without charge, a paper copy of such forms or endorsements, and the Internet address where such forms or endorsements are posted.
In the event the original policy is delivered or is required to be delivered to or for deposit with any vendor, mortgagee, or pledgee of any motor vehicle or aircraft, in which policy any interest of the vendee, mortgagor, or pledgor in or with reference to the vehicle or aircraft is insured, a duplicate of the policy setting forth the name and address of the insurer, the insurance classification of the vehicle or aircraft, the type of coverage, the limits of liability, the premiums for the respective coverages, and the duration of the policy or memorandum of the policy containing the same information shall be delivered by the vendor, mortgagee, or pledgee to each vendee, mortgagor, or pledgor named in the policy or coming within the group of persons designated in the policy to be so included. If the policy does not provide coverage of legal liability for injury to persons or damage to the property of third parties, a statement of such fact shall be printed, written, or stamped conspicuously on the face of the duplicate policy or memorandum.
The provisions of Chapter 12 of Title 10, the "Uniform Electronic Transactions Act," apply to this title, and nothing in this Code section shall be construed to limit its applicability.
In addition to any mailing which may be legally accomplished pursuant to Chapter 12 of Title 10, the "Uniform Electronic Transactions Act," any other required mailing may be performed electronically if the following conditions are met:
1. The Code section which requires a mailing specifically notes that mailing may be accomplished pursuant to this subsection;
2. The insured agrees to receive mailings electronically by signing a statement which reads:
  "I AGREE TO RECEIVE ALL MAILINGS AND COMMUNICATIONS ELECTRONICALLY. SUCH ELECTRONIC MAILING OR COMMUNICATIONS MAY EVEN INCLUDE CANCELLATION OR NONRENEWAL NOTICES";
  
  provided, however, that the Commissioner may approve the use of substantially similar language;
3. If the statement in paragraph (2) of this subsection is physically signed by the insured, then the statement must be in a separate document and written in all capital letters in at least 12 point font, or on a substantially similar form approved by the Commissioner. If the statement is signed electronically, then it must be signed according to a procedure which has been approved by the Commissioner; provided, however, that the Commissioner shall approve a procedure for obtaining a signature only if that procedure is designed to ensure that the statement is not presented in a misleading or confusing manner;
4. If the insurer becomes aware that the insured's e-mail address at which such party has consented to receive notices or documents is no longer valid, the insurer shall send the notice or document as required by other applicable law;
5. The insurer must retain a record pursuant to Chapter 12 of Title 10, the "Uniform Electronic Transactions Act," of the mailing, including proof of the date of mailing and the address to which the mailing was sent. Such record must be retrievable for a period of five years after the date of such mailing and, if requested, must be transmitted to the Commissioner in a reasonable time;
6. The insured may withdraw his or her consent to receive mailings electronically;
7. All conditions have been met under Chapter 12 of Title 10, the "Uniform Electronic Transactions Act," so that the mailing could be accomplished electronically, unless the law requiring the mailing imposes a specific type of delivery method;
8. All conditions have been met under the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001, et seq. This Code section shall not modify, limit, or supersede Section 101(c) of such Act or authorize electronic delivery of any of the notices described in Section 103(b) of such Act; and
9. No insurance company shall cancel, refuse to issue, or refuse to renew any policy because the applicant or insured refuses to agree to receive mailings electronically pursuant to this subsection.

(Code 1933, § 56-2421, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 2014, p. 829, § 4/HB 645; Ga. L. 2017, p. 774, § 33/HB 323.)

The 2014 amendment, effective July 1, 2014, designated the existing provisions of subsection (a) as paragraph (a)(1), and added paragraph (a)(2); and added subsections (c) and (d).

The 2017 amendment, effective May 9, 2017, part of an Act to revise, modernize, and correct the Code, substituted "e-mail" for "electronic mail" in paragraph (d)(4).

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 2014, "apply" was substituted for "applies" in subsection (c).

Law reviews.

- For annual survey on insurance law, see 66 Mercer L. Rev. 93 (2014).

JUDICIAL DECISIONS

Editor's notes.

- In light of the similarity of the statutory provisions, decisions under former Civil Code 1910, § 2470, and former Code 1933, § 56-801, repealed by Ga. L. 1960, p. 289, enacting this title, are included in the annotations for this Code section.

Delivery in reasonable time is included in every insurance contract.

- Every contract for insurance includes, in addition to the requirements of reasonable risk imposed by the insurer prior to issuance of the contract, payment of the requisite premium by the insured, and issuance of the policy by the insurer, the additional act of delivery of the policy of insurance to the insured or other person entitled thereto within a reasonable period of time. Matthews v. National Life & Accident Ins. Co., 141 Ga. App. 368, 233 S.E.2d 442 (1977).

Receipt by agent to deliver is delivery to insured.

- Receipt by an agent from the agent's insurance company of a policy to be unconditionally delivered by the agent to the applicant is, in law, tantamount to a delivery to the insured, although the agent never parts with possession of the policy, and although the policy's delivery to the applicant is by contract made essential to the policy's validity. Southern Life Ins. Co. v. Kempton, 56 Ga. 339 (1876); Fireman's Fund Ins. Co. v. Pekor, 106 Ga. 1, 31 S.E. 779 (1898) (decided under former law) Metropolitan Life Ins. Co. v. Thompson, 20 Ga. App. 706, 93 S.E. 299 (1917);(decided under former Civil Code 1910, § 2470).

Manual delivery of the policy is not necessary when the policy had been issued by the company and simply retained by the agent for the agent's individual protection until reimbursed by the insured. Metropolitan Life Ins. Co. v. Thompson, 20 Ga. App. 706, 93 S.E. 299 (1917), later appeal, 23 Ga. App. 421, 98 S.E. 399 (1919) (decided under former Civil Code 1910, § 2470), 25 Ga. App. 125, 103 S.E. 424 (1920),.

Delivery is not necessary to make contract effective.

- While a policy of insurance is required to be in writing, delivery is not necessary if, in other respects the contract is consummated. Home Ins. Co. v. Head, 35 Ga. App. 143, 132 S.E. 238 (1926), later appeal, 36 Ga. App. 379, 138 S.E. 275 (1927) (decided under former Civil Code 1910, § 2470); South Ga. Farmers Fire Ins. Ass'n v. Smith, 46 Ga. App. 12, 166 S.E. 423 (1932);(decided under former Civil Code 1910, § 2470).

If consideration paid, although risk has been increased.

- When the contract of insurance has been agreed upon by the insurance company and insured has paid the consideration therefor, it is a good contract, a valid policy, whether the policy was delivered to the insured or was still in the hands of the agent. The insured is entitled to the policy and the agent had no right in law to withhold it. The knowledge of the agent that the insured had violated one of the conditions of the policy by increasing the risk of the company would not authorize the agent to refuse to deliver the policy upon the insured's demand. Massachusetts Mut. Life Ins. Co. v. Boswell, 20 Ga. App. 446, 93 S.E. 95, cert. denied, 20 Ga. App. 832 (1917) (decided under former Civil Code 1910, § 2470).

Unless policy requires delivery.

- When an insurance company has accepted an application for insurance and has issued the policy, actual delivery is not essential to the consummation of a contract of insurance, unless expressly provided for in the application or the policy. When both the application and the policy are silent as respects actual delivery of the policy being essential to a consummation of the contract, the contract becomes consummated upon the retention by the company of the notes and the issuance of the policy and mailing the policy to the company's local agent for delivery to the applicant. Tarver v. Swann, 36 Ga. App. 461, 137 S.E. 126 (1927) (decided under former Civil Code 1910, § 2470).

Parol agreement requiring actual delivery for consummation held ineffective.

- When an application for insurance, which, upon the consummation of the contract of insurance, became a part of the contract, provided that the company should "not be bound by any act done or statement made by or to any agent, or other person, which is not contained in this application," an agreement not contained in the application or the policy, made between the applicant and the local agent, when the application and notes were signed, to the effect that the contract of insurance would not be consummated until actual delivery of the policy to the applicant, and that upon failure to make such actual delivery the applicant would not be bound upon the notes, did not become part of the contract. Tarver v. Swann, 36 Ga. App. 461, 137 S.E. 126 (1927) (decided under former Civil Code 1910, § 2470).

Insurance contracts are considered made at the contract's place of delivery. Canal Ins. Co. v. Aldrich, 489 F. Supp. 157 (S.D. Ga. 1980).

Burden of proving custom as to consummating renewals.

- When a contract of insurance is not delivered, an agent whose duty it is to keep the property of the agent's principal insured is under obligation to see that, in other respects, the contract is consummated, and on being sued for a breach of duty, the burden of proving that it was in fact consummated is on the agent. If one seeks to show this by evidence of a local custom whereby it was the practice of insurance companies to renew any policy about to expire by sending out a new policy shortly before the expiration of the former one and presenting a bill for the premium within a month or two after such expiration, the burden is on the agent to establish that this custom was complied with in the particular instance. Thomas v. Funkhouser, 91 Ga. 478, 18 S.E. 312 (1893) (decided under former Code 1882, § 2794).

When the insured had prior knowledge, the insurance company could rely on an exclusion contained in the policy, even though the policy was not delivered until after the loss occurred. Williams v. Fallaize Ins. Agency, Inc., 220 Ga. App. 411, 469 S.E.2d 752 (1996).

Motorist's parent's deletion of the motorist's vehicle from the parent's insurance policy was properly relied on by an insurer in the insurer's denial of coverage of a driver, arising from a motor vehicle collision with the motorist, although the insurer failed to prove that the insurer provided the parent with a written copy of the endorsement within a reasonable period of time of the issuance thereof, as required by O.C.G.A. § 33-24-14, as the parent had notice of the endorsement because the motorist made the request to change the policy coverage; the decrease in premium was consideration for deletion of the coverage. Danforth v. Gov't Emples. Ins. Co., 282 Ga. App. 421, 638 S.E.2d 852 (2006), cert. denied, No. S07C0473, 2007 Ga. LEXIS 143 (Ga. 2007).

Cited in Broome v. Mutual of Omaha Ins. Co., 119 Ga. App. 443, 167 S.E.2d 607 (1969).

RESEARCH REFERENCES

Am. Jur. 2d.

- 43 Am. Jur. 2d, Insurance, § 209 et seq.

C.J.S.

- 44 C.J.S., Insurance, §§ 497, 498.

ALR.

- Date from which life insurance premium periods are to be computed, 32 A.L.R. 1253; 80 A.L.R. 957; 111 A.L.R. 1420; 169 A.L.R. 290.

What amounts to a "delivery" or an "actual delivery" to insured within express provision of insurance policy, 53 A.L.R. 492; 145 A.L.R. 1434.

Right of insurer to show that delivery of policy was conditional, 95 A.L.R. 472.

Constructive delivery of policy ready for delivery to insured upon compliance with certain conditions which he agreed to perform but had not performed prior to the loss, 123 A.L.R. 907.

Rights and remedies arising out of delay in passing upon application for insurance, 32 A.L.R.2d 487.

Transmission of insurance policy to insurance agent as satisfying provision requiring delivery to insured, 19 A.L.R.3d 953.

Insurer's duty, and effect of its failure, to provide insured or payee with copy of policy or other adequate documentation of its terms, 78 A.L.R.4th 9.

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