HB 1262: Insurance; increase amount of monetary penalties authorized to impose for certain violations of the Georgia Insurance Code

Georgia law currently caps most monetary penalties the Commissioner of Insurance can impose at $2,000 per violation, rising to $5,000 if the violator knew or should have known they were breaking the rules. This bill increases those caps significantly across four areas of the Georgia Insurance Code (Title 33): mental health parity reporting requirements, the Commissioner's general enforcement authority over licensees, the Surprise Billing Consumer Protection Act, and prepaid legal services plan licensing. Under the bill, the base penalty amounts rise from $2,000 to $10,000 per violation, and the enhanced penalty for knowing or reasonable-should-have-known violations rises from $5,000 to $25,000 per violation. These changes apply uniformly to health insurers that fail to report mental health parity data, licensees who violate Title 33 or Commissioner orders, insurers that violate surprise billing rules, and prepaid legal services plan sponsors subject to disciplinary action. The law would take effect as soon as the Governor signs it or it becomes law without signature.

• Raises the base penalty for health insurers that fail to submit required mental health parity reports or data from $2,000 to $10,000 per violation.
• Raises the enhanced penalty for knowing mental health parity violations from $5,000 to $25,000 per violation.
• Increases the Commissioner's general penalty authority against any licensee violating Title 33 or Commissioner orders from $2,000/$5,000 to $10,000/$25,000 per violation.
• Raises penalties under the Surprise Billing Consumer Protection Act (O.C.G.A. § 33-20E-26) from $2,000/$5,000 to $10,000/$25,000 per violation.
• Increases the maximum fine the Commissioner can impose on prepaid legal services plan sponsors from $2,000 to $10,000 per offense.

Health insurers subject to mental health parity reporting rules, any person or company licensed under Georgia's insurance code, insurers covered by the surprise billing law, and sponsors of prepaid legal services plans all face higher potential fines from the Commissioner of Insurance under this bill.

Insurers and licensees who violate these insurance rules would face fines up to five times larger than current law allows, which could increase the financial consequences of noncompliance with mental health parity reporting, surprise billing protections, and general licensing rules enforced by the Commissioner of Insurance.

• Section 1 raises mental health parity reporting penalties under O.C.G.A. § 33-1-27 from $2,000 to $10,000 (base) and $5,000 to $25,000 (knowing violation).
• Section 2 raises the Commissioner's general enforcement penalties under O.C.G.A. § 33-2-24 against licensees to the same $10,000/$25,000 tiers.
• Section 3 raises surprise billing penalties under O.C.G.A. § 33-20E-26 to $10,000/$25,000 per violation.
• Section 4 raises the maximum fine for prepaid legal services plan sponsors under O.C.G.A. § 33-35-7 from $2,000 to $10,000 per offense.
• Section 5 sets the effective date as the date the Governor signs the bill or it becomes law without signature.
• Section 6 repeals conflicting laws.

1. 2026-03-03Senate Read and Referred (Senate)
2. 2026-02-26House Passed/Adopted (House)
3. 2026-02-26House Third Readers (House)
4. 2026-02-19House Committee Favorably Reported (House)
5. 2026-02-12House Second Readers (House)
6. 2026-02-11House First Readers (House)
7. 2026-02-10House Hopper (House)

• Eddie Lumsden (R, HD-012)Primary sponsor
• Matt Reeves (R, HD-099)
• Darlene Taylor (R, HD-173)
• Matthew Gambill (R, HD-015)
• Bruce Williamson (R, HD-112)
• Mark Newton (R, HD-127)

1. PassedHouse voteFebruary 26, 2026

   170 yea, 1 nay (4 not voting, 2 absent)

   Passage: House Vote #573

• insurance regulation
• mental health parity
• surprise billing
• insurance penalties
• prepaid legal services