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

25 LC 46 1074 Senate Bill 156 By: Senators Mallow of the 2nd, Harbison of the 15th, Merritt of the 9th, Islam Parkes of the 7th, Lucas of the 26th and others A BILL TO BE ENTITLED AN ACT To amend Code Section 33-9-4 of the Official Code of Georgia An notated, relating to1 standards applicable to making and use of rates, so as to add c ensus tract to the categories2 upon which insurers may not consider when promulgating standard s or rating plans; to3 amend Article 1 of Chapter 24 of Title 33 of the Official Code of Georgia Annotated, relating4 to general insurance provisions, so as to broadly address insurer premium rate increases; to5 require certain disclosures; to establish a new state-run database; to require the submission6 of certain data in certain situations; to increase penalties; to provide for a minium number of7 days of notice for nonrenewals across all lines of insurance; t o provide for a short title; to8 provide for related matters; to repeal conflicting laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 This Act shall be known and may be cited as the "Georgia Insura nce Premium Reduction12 Act." 13 S. B. 156 - 1 - 25 LC 46 1074 SECTION 2.14 Code Section 33-9-4 of the Official Code of Georgia Annotated, relating to standards15 applicable to making and use of rates, is amended by revising paragraph (9) as follows:16 "(9) No insurer shall base any standard or rating plan on vehicle insurance, in whole or17 in part, directly or indirectly, upon race, creed, or ethnic extraction, or census tract; and"18 SECTION 3.19 Article 1 of Chapter 24 of Title 33 of the Official Code of Geo rgia Annotated, relating to20 general insurance provisions, is amended in Code Section 33-24-45, relating to cancellation21 or nonrenewal of automobile or motorcycle policies and procedur e for review by22 Commissioner, by revising subparagraph (e)(5)(B) as follows:23 "(B) In addition to other requirements, a notice of nonrenewal shall contain the24 provisions of subparagraph (A) of this paragraph, in substantially the form which25 follows:26 'NOTICE27 Code Section 33-24-45 of the Official Code of Georgia Annotated provides that this28 insurer must, upon request, furnish you with the reasons for the failure to renew this29 policy. If you wish to assert that the nonrenewal is unlawful, you must shall file a30 written notice with this insurer before the time at which the n onrenewal becomes31 effective. The notice must specify the manner in which the failure to renew is alleged32 to be unlawful.33 If you do not file the written notice, you may not later assert a claim or action against34 this insurer based upon an unlawful nonrenewal."35 SECTION 4.36 Said article is further amended by adding a new Code section to read as follows:37 S. B. 156 - 2 - 25 LC 46 1074 "33-24-59.34.38 (a) All insurers in this state shall disclose on such insurer' s public website all requests39 made to the department to increase premium rates by more than 5 percent. All such40 disclosures shall be accompanied by a justification report. The term 'justification report'41 means a document which describes such insurer's reasoning and the data relied upon which42 form the basis for such insurer's request.43 (b) The department shall establish a state-run online database where consumers can44 compare coverage options and insurance rates of all lines of insurance policies filed with45 the department. At the discretion of the department, such data base may not contain46 information already publicly available on the All-Payer Claims Database.47 (c) Notwithstanding any provision of law to the contrary, all insurers requesting48 department approval of premium rate increases of more than 5 percent shall submit detailed49 actuarial data to support such request.50 (d) Notwithstanding any provision of law to the contrary, the Commissioner shall hold51 public hearings in accordance with Code Section 33-2-17 and oth er relevant law on all52 premium rate increase requests of more than 10 percent.53 (e) No insurer shall collude with another insurer with regard to premium rates. Any54 insurer found by the Commissioner to have violated this subsection and whose actions are55 determined by the Commissioner to have contributed toward premium inflation shall also56 be found to have committed an unfair trade practice or act in v iolation of Code57 Section 33-6-4.58 (f) No insurer shall settle litigation with the primary purpose of manufacturing losses to59 justify premium increases. Any insurer determined by the Commissioner to have violated60 this subsection shall also be found to have committed an unfair trade practice or act in61 violation of Code Section 33-6-4.62 (g) No insurance policy may be sold to a consumer in this stat e without such consumer63 being represented by an independent insurance broker."64 S. B. 156 - 3 - 25 LC 46 1074 SECTION 5.65 Said article is further amended by adding a new Code section to read as follows:66 "33-24-47.2.67 Notwithstanding any provision of law to the contrary, no insurance policy in this state shall68 be nonrenewed unless the insured is provided at least 60 days' written notice of such69 nonrenewal. Such notice of nonrenewal shall be delivered either in person or by depositing70 the notice in the United States mail to be dispatched by at least first-class mail to the last71 address of record of the insured with return receipt requested as provided by the United72 States Postal Service, or such other evidence of mailing as prescribed or accepted by the73 United States Postal Service."74 SECTION 6.75 All laws and parts of laws in conflict with this Act are repealed.76 S. B. 156 - 4 -