Georgia Insurance Defense Lawyer Blog

Posted by Wm. Daniel Floyd

Effective July 1, 2010, it is illegal to text while driving or stopped at a traffic light in the State of Georgia. Drivers caught breaking this law face a $150 fine and one point on their driver’s license.

While this law has received a lot of publicity lately, there was already a law on the books that regulated texting by drivers. The old law prohibited drivers from performing any action that would distract from driving carefully. The legislature created this generic statute in 1990 as an attempt to limit the increased use of mobile telephones while driving. Primarily, the law was used by police officers when investigating accidents as an additional charge if they believed the improper cell phone use caused an automobile accident. Further, some local governments, like DeKalb County took the stronger stance by imposing an additional $500 fine if the driver causing the accident was talking on the phone at the time of the accident. See OCGA § 40-6-241.

Continue reading " LEGISLATURE REINVENTS THE WHEEL WITH TEXTING BAN " »

Posted by H. Lee Pruett

Answering certified questions from the U.S. Court of Appeals for the Eleventh Circuit, the Georgia Supreme Court recently ruled that when an insurer enters into a defense of its insured without effectively reserving its right to deny coverage, prejudice to the insured is presumed, and the insurer is estopped from asserting noncoverage. In World Harvest Church, Inc. v. GuideOne Mut. Ins. Co., Case No. S10Q0341 (Ga. S. Ct., May 3, 2010), GuideOne insured the church under a general liability policy. The Securities and Exchange Commission sued the church for fraudulent transfer and unjust enrichment stemming from donations to the church from two men who had pled guilty to securities fraud. The action was first brought in federal court in Illinois, and a sister company of GuideOne sent a written reservation of rights to the church and ultimately denied coverage. After dismissal of the Illinois action for lack of jurisdiction, the SEC filed suit in the U.S. District Court for the Northern District of Georgia.

Continue reading " GEORGIA SUPREME COURT CLARIFIES AN INSURANCE COMPANY’S DUTY TO UNEQUIVOCALLY RESERVE ITS RIGHT TO DENY COVERAGE BEFORE DEFENDING ITS INSURED IN THE UNDERLYING LAWSUIT. " »