House Bill 1262
By: Representatives Lumsden of the 12th, Reeves of the 99th, Taylor of the 173rd, Gambill of
the 15th, Williamson of the 112th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 33 of the Official Code of Georgia Annotated, relating to insurance, so as to
increase the amount of monetary penalties the Commissioner of Insurance is authorized to
impose for violations of the Georgia Insurance Code relative to mental health parity, general
enforcement authority, surprise billing, and prepaid legal services plans; to provide for
related matters; to provide for an effective date; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 33 of the Official Code of Georgia Annotated, relating to insurance, is amended in
Chapter 1, relating to general provisions, by revising paragraph (1) of subsection (i) of Code
Section 33-1-27, relating to insurance coverage for mental health and substance abuse
disorders, compliance with mental health parity requirements, complaints and violations, and
appointment of mental health parity officer, as follows:
"(i)(1) If the Commissioner determines that a health insurer failed to submit a timely
or sufficient report required under paragraph (4) of subsection (b) of this Code section
or failed to submit timely and sufficient data pursuant to a data call conducted pursuant
to paragraph (1) of subsection (c) of this Code section, the Commissioner may impose
a monetary penalty of up to <del>$2,000.00</del> <ins>$10,000.00</ins> for each and every act in violation,
unless the insurer knew or reasonably should have known that he or she was in
violation, in which case the monetary penalty may be increased to an amount of up to
<del>$5,000.00</del> <ins>$25,000.00</ins> for each and every act in violation."
SECTION 2.
Said title is further amended in Chapter 2, relating to Department and Commissioner, by
revising subsection (g) of Code Section 33-2-24, relating to enforcement of title and rules,
regulations, and orders, issuance of orders without hearings, civil actions, criminal violations,
and penalties, as follows:
"(g) In addition to all other penalties provided for under this title, the Commissioner shall
have the authority:
(1) To place any person duly licensed under this title on probation for a period of time
not to exceed one year for each and every act in violation of this title or of the rules,
regulations, or orders of the Commissioner; and
(2) To subject any person duly licensed or that should be licensed under this title to a
monetary penalty of up to <del>$2,000.00</del> <ins>$10,000.00</ins> for each and every act in violation of this
title or of the rules, regulations, or orders of the Commissioner, unless such person knew
or reasonably should have known he or she was in violation of this title or of the rules,
regulations, or orders of the Commissioner, in which case the monetary penalty provided
for in this paragraph may be increased to an amount up to <del>$5,000.00</del> <ins>$25,000.00</ins> for each
and every act in violation."
SECTION 3.
Said title is further amended in Chapter 20E, relating to the "Surprise Billing Consumer
Protection Act," by revising subsection (a) of Code Section 33-20E-26, relating to
enforcement and monetary penalties, as follows:
"(a) For each and every act in violation of Code Section 33-20E-24, the Commissioner
may impose a monetary penalty of up to <del>$2,000.00</del> <ins>$10,000.00,</ins> unless the insurer knew or
reasonably should have known of the violation, in which case the monetary penalty
imposed may be up to <del>$5,000.0</del> <ins>$25,000.00</ins> for each and every act in violation."
SECTION 4.
Said title is further amended in Chapter 35, relating to prepaid legal services plans, by
revising subsection (c) of Code Section 33-35-7, relating to grounds and procedure for
revocation, suspension, or refusal to renew licenses, imposition of probation or fine, and
review, as follows:
"(c) In lieu of revoking, suspending, or refusing to renew the license for any of the causes
enumerated in subsection (a) of this Code section, after <ins>any</ins> hearing as provided in this
subsection the Commissioner may place the sponsor on probation for a period of time not
to exceed one year or may fine the sponsor not more than <del>$2,000.00</del> <ins>$10,000.00</ins> for each
offense, or <del>do</del> both, when, in the Commissioner's judgment he or she finds that the public
interest would not be harmed by the continued operation of the sponsor. The amount of
any penalty shall be paid by such sponsor to the Commissioner for the use of the state."
SECTION 5.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 6.
All laws and parts of laws in conflict with this Act are repealed.