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

25 LC 46 1237 Senate Bill 364 By: Senators Hatchett of the 50th, Strickland of the 42nd, Till ery of the 19th, Summers of the 13th, Robertson of the 29th and others A BILL TO BE ENTITLED AN ACT To amend Chapter 9 of Title 33 of the Official Code of Georgia Annotated, relating to1 regulations of rates, underwriting rules, and related organizations, so as to provide for new2 penalties for insurers that knowingly give false or misleading information to the3 Commissioner of Insurance and such information affected insuran ce premium rates; to4 provide for related matters; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Chapter 9 of Title 33 of the Official Code of Georgia Annotated , relating to regulation of8 rates, underwriting rules, and related organizations, is amende d by revising Code Section9 33-9-29, relating to issuance of remedial orders by Commissioner generally and suspension10 or revocation of certificate of authority or license, as follows:11 "33-9-29.12 If after a hearing pursuant to Code Section 33-9-28 the Commissioner finds:13 (1) That any rate, rating plan, or rating system violates the applicable provisions of this14 chapter, he or she may issue an order to the insurer or rating organization which has been15 the subject of the hearing specifying in what respects the viol ation exists and stating16 S. B. 364 - 1 - 25 LC 46 1237 when, within a reasonable period of time, the further use of the rate or rating system by17 the insurer or rating organization in contracts of insurance ma de thereafter shall be18 prohibited and may further order that the portion of premiums r eceived from current19 policyholders as a result of the most recent rate increase at t he time the notice of such20 hearing is issued shall be refunded to the policyholders;21 (2) That an insurer, rating organization, advisory organization, or similar organization22 by another name willfully withheld information from, or knowing ly gave false or23 misleading information to, the Commissioner in an attempt to af fect the rates, rating24 systems, or premiums approved or allowed by the Commissioner, the Commissioner may25 further order that such organization pay the department up to t en times the amount in26 fines that such organization is required to refund policyholder s in accordance with27 paragraph (1) of this Code section. Such authority shall be in addition to all of the28 Commissioner's other authority to impose fines under this title;29 (2)(3) That an insurer, rating organization, advisory organization, or a group, association,30 or other organization of insurers which engages in joint underwriting or joint reinsurance31 is in violation of the provisions of this chapter applicable to it other than the provisions32 dealing with rates, rating plans, or rating system, he or she may issue an order to the33 insurer, organization, group, or association which has been the subject of the hearing34 specifying in what respects the violation exists and requiring compliance within a35 reasonable time thereafter;36 (3)(4) That the violation of this chapter applicable to it by any in surer or rating37 organization which has been the subject of the hearing was willful, he or she may suspend38 or revoke, in whole or in part, the certificate of authority of each insurer or the license of39 each rating organization with respect to the class of insurance which has been the subject40 matter of the hearing; or41 S. B. 364 - 2 - 25 LC 46 1237 (4)(5) That any rating organization has willfully engaged in any fraudulent or dishonest42 act or practices, he or she may suspend or revoke, in whole or in part, the license of the43 organization in addition to any other penalty provided in this chapter."44 SECTION 2.45 All laws and parts of laws in conflict with this Act are repealed.46 S. B. 364 - 3 -