SB156: SB156 "Georgia Insurance Premium Reduction Act"; enact

Georgia law already bars auto insurers from basing rates on race, creed, or ethnic background. This bill adds census tract (a small geographic area used by the Census Bureau) to that list, so insurers could not use where someone lives at that level of detail to set vehicle insurance rates. The bill also adds new consumer protection rules for all lines of insurance. Insurers seeking rate increases above 5 percent would have to post a justification report online and submit detailed actuarial data to the Georgia Department of Insurance. Increases above 10 percent would trigger public hearings. The bill bans insurer collusion on rates and lawsuit settlements meant to justify premium hikes, treating violations as unfair trade practices. It requires the department to build a public database comparing insurance rates, extends the minimum nonrenewal notice to 60 days across all insurance lines, and requires that every policy sold in Georgia involve an independent insurance broker. The law would repeal any conflicting statutes.

• Adds census tract to the list of factors, along with race, creed, and ethnic extraction, that insurers may not use to set vehicle insurance rates (O.C.G.A. § 33-9-4).
• Requires insurers to publicly disclose on their websites any request for a premium rate increase over 5 percent, along with a written justification report.
• Creates a new state-run online database at the Department of Insurance where consumers can compare rates and coverage across all lines of insurance.
• Requires public hearings before the Insurance Commissioner for any premium rate increase request above 10 percent.
• Bans insurers from colluding on rates or settling lawsuits mainly to justify premium increases, treating violations as unfair trade practices under O.C.G.A. § 33-6-4.
• Extends the required written notice before any insurance policy nonrenewal to at least 60 days and requires every policy sale to involve an independent insurance broker.

Auto and other insurance companies operating in Georgia, the Georgia Department of Insurance and the Commissioner, independent insurance brokers, and Georgia consumers who buy or renew insurance policies, especially those facing nonrenewal or premium increases.

Georgians could see more public information before premium hikes take effect, more advance notice before a policy is dropped, and a new comparison tool for shopping insurance. Insurers would face added disclosure, hearing, and broker-involvement requirements that could change how quickly rates change and policies are sold.

• Section 1 names the bill the 'Georgia Insurance Premium Reduction Act.'
• Section 2 revises O.C.G.A. § 33-9-4 to bar insurers from basing vehicle insurance rating plans on census tract in addition to race, creed, or ethnic extraction.
• Section 3 updates the required nonrenewal notice language insurers must send policyholders under O.C.G.A. § 33-24-45.
• Section 4 adds new O.C.G.A. § 33-24-59.34, requiring disclosure and justification reports for rate hikes over 5 percent, a state rate-comparison database, actuarial data submission, public hearings for hikes over 10 percent, anti-collusion and anti-manufactured-litigation rules, and mandatory use of an independent broker for every policy sale.
• Section 5 adds new O.C.G.A. § 33-24-47.2, setting a 60-day minimum written notice requirement for nonrenewal of any insurance policy in the state.
• Section 6 repeals any conflicting laws.

1. 2025-02-13Senate Read and Referred (Senate)
2. 2025-02-12Senate Hopper (Senate)

• Derek Mallow (D, SD-002)Primary sponsor
• Ed Harbison (D, SD-015)
• Nikki Merritt (D, SD-009)
• Nabilah Islam Parkes (D, SD-007)
• David Lucas (D, SD-026)
• Freddie Sims (D, SD-012)

• insurance regulation
• auto insurance rates
• insurance nonrenewal notice
• insurance premiums
• insurance brokers