By Joseph L. Cregan
In last quarter’s newsletter, I advised readers of a comprehensive rewrite of Chapter 59 of the Georgia Insurance Code relating to life settlements. The bill was introduced by Senator Ralph Hudgens (R Northeast Georgia), who is the current Chair of the Senate Insurance and Labor Committee. Although the bill passed the relevant Senate committees and Senate floor fairly easily, it failed to pass the Georgia House.
The primary reason for the bill’s lack of success in the House -- and particularly with the House Insurance Committee -- appears to be the relative newness of the Life Settlements Act itself. It was only passed in 2005. It appeared that at least some of the members of the House Insurance Committee wanted to allow the industry more time to adapt to the existing law and for the existing law to “absorb” more prospective licensees.
Senator Hudgens is very likely to be re-elected in the next election cycle and has expressed a determination to continue studying the life settlements industry and to reintroduce a similar bill when the General Assembly reconvenes in January of 2009. Of course, we will continue to monitor this and other Georgia legislation of interest to the insurance industry and others following developments in Georgia’s insurance market.
Joe Cregan is a partner in the firm’s insurance group. He specializes in the areas of insurance regulation, mergers and acquisitions of insurers, insurance company financial matters and general administrative law. Joe received his bachelor’s degree from Youngstown State University, his master’s degree from Kent State University and his law degree from Georgia State University.
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