SB364: SB364 Insurers; new penalties for insurers that knowingly give false or misleading information to the Commissioner of Insurance; provide

Georgia law already lets the Insurance Commissioner hold hearings and order insurers to refund policyholders when a rate or rating system is found to violate state insurance law. This bill adds a new penalty aimed specifically at dishonesty during that process. Under the bill, if the Commissioner finds that an insurer, rating organization, advisory organization, or similarly named group willfully withheld information or knowingly gave false or misleading information in an attempt to affect rates, rating systems, or premiums, the Commissioner may order that organization to pay the Department of Insurance up to ten times the amount it must refund to policyholders under existing law. The bill states this new fine authority is in addition to, not instead of, the Commissioner's other existing power to impose fines. The rest of the bill renumbers surrounding penalty provisions but does not otherwise change them.

• Adds a new penalty letting the Commissioner fine an insurer or rating organization up to ten times the refund amount owed to policyholders when the organization knowingly lied or withheld information affecting rates.
• Applies the new penalty to insurers, rating organizations, advisory organizations, or similarly named groups involved in setting insurance rates or premiums.
• Clarifies that this new fine power adds to, rather than replaces, the Commissioner's existing authority to impose fines under Title 33 of Georgia law.
• Renumbers the existing paragraphs of O.C.G.A. § 33-9-29 to fit in the new penalty provision, without changing their substance.

Insurance companies operating in Georgia, rating organizations and advisory organizations that help set insurance rates, and the Georgia Department of Insurance and its Commissioner, who would gain new fining power. Policyholders are indirectly affected since the underlying refund process stays the same.

If enacted, insurers found to have knowingly deceived the Commissioner about information that affected premium rates could face fines far larger than before, potentially discouraging companies from misrepresenting information during rate reviews. The change adds financial risk for insurers found dishonest in this specific context.

• Section 1 revises O.C.G.A. § 33-9-29, which governs remedial orders the Commissioner can issue after a rate hearing.
• New paragraph (2) lets the Commissioner order an insurer or rating organization to pay the department up to ten times the refund amount owed to policyholders if it willfully withheld or knowingly gave false or misleading information affecting rates or premiums.
• The bill specifies this fine authority is 'in addition to' the Commissioner's other existing authority to impose fines under Title 33.
• Existing paragraphs on violations other than rate-related ones, willful violations, and fraudulent practices by rating organizations are renumbered but left substantively unchanged.
• Section 2 repeals conflicting laws, a standard closing provision.

1. 2025-03-28Senate Read and Referred (Senate)
2. 2025-03-27Senate Hopper (Senate)

• Bo Hatchett (R, SD-050)Primary sponsor
• Brian Strickland (R, SD-042)
• Blake Tillery (R, SD-019)
• Carden Summers (R, SD-013)
• Randy Robertson (R, SD-029)
• John Albers (R, SD-056)
• Drew Echols (R, SD-049)
• Nabilah Islam Parkes (D, SD-007)
• Derek Mallow (D, SD-002)

• insurance regulation
• insurance rates
• insurance penalties
• Georgia Department of Insurance