Georgia CommonsHouse · Engrossed · 2025-2026 Regular Session
HB 1274: Auto Insurance Excess Profits Act; enact
Last action March 31, 2026 · Senate Tabled
HB 1274 would let Georgia's Insurance Commissioner order refunds when auto insurers make excess profits, set new payment rules for out-of-network ambulance rides, and create new protections for life insurance policyholders.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest the General Assembly's website lists.
In plain language
HB 1274 rewrites several parts of Georgia's insurance code (Title 33). It requires companies that sell private passenger auto insurance to file annual data with the Department of Insurance so the department can calculate whether the insurer's underwriting gain exceeds its anticipated profit plus 6 percent of earned premiums, a threshold the bill calls 'excess profit.' If the Commissioner finds excess profit, the insurer must submit a refund or credit plan, and after approval must send cash refunds or apply credits to renewal premiums, generally within 60 days. The bill also changes how health plans pay for out-of-network ground ambulance rides, setting a minimum reimbursement rate (either a local government rate or 325 percent of Medicare's rate, whichever is lower) and capping what patients pay out of pocket. It requires life insurers to search a national database quarterly for unclaimed policy beneficiaries, and creates a 'Georgia Policyholder Bill of Rights' giving policyholders rights to keep their original agent, get annual status reports, and authorize others to access their policy records. Most provisions take effect July 1, 2026; the ambulance billing section takes effect January 1, 2027.
What the bill does
- Requires auto insurers to file annual data with the Department of Insurance so regulators can check for 'excess profit' (underwriting gains above anticipated profit plus 6 percent of premiums).
- Lets the Commissioner of Insurance order refunds or premium credits to policyholders when excess profit is found, with a hearing process and 60-day payment deadlines.
- Bars insurers from adjusting commission, premium tax, or other tax payments to offset any refunds they issue.
- Sets a minimum reimbursement rate for out-of-network ground ambulance rides (the lower of a local government rate or 325 percent of Medicare rates) and caps patient copayments and deductibles at in-network levels.
- Requires life insurers to search a national unclaimed-policy database quarterly and report results to the Commissioner starting January 1, 2027.
- Creates a 'Georgia Policyholder Bill of Rights' giving life insurance policyholders rights to keep their original agent, get annual status reports, and authorize a third party to access policy documents using a standardized notarized form.
Who it affects
Private passenger auto insurance companies operating in Georgia, health insurers and healthcare plans, ground ambulance providers, life insurance companies, and Georgia policyholders and beneficiaries of auto, health, and life insurance policies. The Department of Insurance and its Commissioner gain new oversight duties.
Why it matters
Georgia drivers could see refunds or premium credits if their auto insurer is found to be making excess profits. Patients who need an out-of-network ambulance would face capped costs, and ambulance providers would get a guaranteed minimum payment. Life insurance customers would gain new rights to information and to keep their chosen agent.
Key provisions
- Section 1 defines 'excess profit' for auto insurers as underwriting gains over five years exceeding anticipated profit plus 6 percent of earned premiums, and requires annual data filings starting January 1, 2028.
- Section 1 gives the Commissioner authority to order refunds via hearing, requiring cash refunds within 60 days of a final order or credits applied to renewal premiums.
- Section 2 sets a minimum ambulance reimbursement rate of the lesser of a local government-set rate or 325 percent of the Medicare rate, and requires insurers to pay clean claims within 30 days directly to the ambulance provider.
- Section 3 requires life insurers to search the NAIC policy locator system quarterly and, within 30 days of a match, verify and contact the beneficiary.
- Section 4 creates the 'Georgia Policyholder Bill of Rights' (O.C.G.A. § 33-25-16), covering agent retention, annual status reports, and a standardized authorization form limited to 12 months.
- Section 5 sets the general effective date as July 1, 2026, but delays the ambulance billing provisions (Section 2) until January 1, 2027.
From the bill
“'Excess profit' means an underwriting gain for the five most recent calendar accident years combined which is greater than the anticipated underwriting profit plus 6 percent of earned premiums for such calendar accident years.”
“No insurer that makes any refund pursuant to this Code section shall be allowed to adjust any payments of commissions, premium tax, or other tax due to such refund.”
“This Code section shall be known and may be cited as the 'Georgia Policyholder Bill of Rights.'”
Discussed in meetings (12)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Insurance Committee, February 19, 2026
From 0:23:20 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1274 would require auto insurers to file for a rate decrease if profits exceeded the anticipated profits in their rate filings by at least 5% for three consecutive years. The sponsor said the proposal followed study committee testimony asking that insurers share strong profits with customers and drew on a Florida law. According to the sponsor, that approach produced $1 billion in reductions from one Florida insurer. The sponsor also said 10 companies had recently cut Georgia rates and two had entered the market. One committee member supported the proposal but asked when Georgia insurers had last exceeded anticipated profits by that amount for three straight years. The sponsor answered that it had been a while, and the member emphasized the industry’s difficulty making profits. The sponsor acknowledged challenges from crashes and uninsured motorists while arguing that the bill would encourage further savings. The committee approved it by voice vote.
House Rules Committee, February 23, 2026
From 1:22:27 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: One member requested HB 1274 on behalf of its sponsor and identified it as an auto insurance excess-profits measure. A second member later repeated the request, and the chair reminded members that one request was sufficient. No substantive explanation, debate or calendar vote followed.
House Rules Committee, February 25, 2026
From 1:02:08 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1621
Summary by Georgia Commons: The sponsor said HB 1274, requested by the insurance commissioner, would require an auto insurer to file a rate decrease if actual profit exceeded the anticipated profit in its rate filings by at least 5% for three consecutive years. The sponsor said the approach would encourage savings to reach consumers earlier and cited a Florida example said to have reduced one company's premiums by $1 billion. No questions followed. Later, the committee placed the bill on Thursday's floor calendar without stated opposition.
House floor session, February 26, 2026 (legislative day 25, AM)
From 2:09:25 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1629
Summary by Georgia Commons: The sponsor said HB 1274 would require auto insurers to file a rate decrease when profits exceed anticipated profits by at least 5 percent for three consecutive years. The sponsor described it as modeled on Florida law and intended to pass excess profits on to customers. One member asked whether insurers could inflate profit estimates to avoid the requirement. The sponsor said the insurance commissioner could compare filings with past figures and scrutinize unusual amounts. A second member asked whether insurers could hide profits through separate accounting. The sponsor said the bill would tighten oversight of filing details, alongside HB 1344. In response to the chair, the sponsor said the measure would make auto insurance more affordable. The House passed the bill, 169 to 1.
Senate Insurance and Labor Committee, March 17, 2026
From 0:37:15 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The chair announced that a subcommittee would handle HB 1274. The committee did not discuss its provisions or vote on it.
House Insurance Committee, March 20, 2026
From 0:28:17 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor of SB 462 identified HB 1274 as an added measure concerning auto-insurance policy data and profits. The discussion did not explain its requirements further. A supporting committee member said the added House measures were intended to improve insurance affordability, while another member said more time was needed to understand them. The committee approved the package within SB 462, then reconsidered and approved it with a local-government reporting amendment. Later, a member said HB 1274 and the other three House insurance measures had also been added to SB 503. The committee approved that bill with the same reporting amendment. No separate vote on HB 1274 was taken.
Senate Insurance and Labor Committee, March 26, 2026
From 0:17:46 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the substitute would require auto insurers to rebate excess profits using a five-year review and a 6% threshold, beginning January 1, 2028. The sponsor described it as modeled on Florida law and intended to encourage more accurate, modest rate filings. Rebates would leave commissions and taxes unchanged and be paid within 60 days of a final insurance department order. The sponsor also described provisions protecting consumers from surprise ambulance bills, requiring searches for life insurance beneficiaries, and allowing policyholders to authorize someone to access policy information through a standardized form. One member objected to receiving lengthy substitutes without adequate review time. Other members echoed that concern, and another questioned conflicting document numbers. The committee adopted a correction changing two review intervals to four and three evaluations to five, matching the five-year period, with one opposing vote. The sponsor also proposed allowing rate reviewers to consider fines and other adverse information while preserving confidentiality, but withdrew that proposal for further work. The committee approved the substitute as amended, with one opposing vote.
Senate Rules Committee, March 30, 2026
From 1:24:30 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: A member selected HB 1274 for the floor calendar. No substantive explanation or debate followed. The committee unanimously approved the calendar containing it.
- Read aloud: House floor session, February 12, 2026 (legislative day 18), 0:45:35
- Read aloud: House floor session, February 17, 2026 (legislative day 19), 0:56:57
- Read aloud: Senate floor session, March 3, 2026 (legislative day 26), 0:28:16
- Read aloud: Senate floor session, March 27, 2026 (legislative day 38), 0:27:55
Status timeline
- Senate Tabled (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
Show full history (10 actions)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Matt Reeves (R, HD-99)
- Eddie Lumsden (R, HD-12)
- Trey Kelley (R, HD-16)
- Chuck Efstration (R, HD-104)
- Soo Hong (R, HD-103)
- Michelle Au (D, HD-50)
- Marty Harbin (R, SD-16)
Votes
- House voteFebruary 26, 2026
169 yea, 1 nay (6 not voting, 1 excused)
- Senate voteMarch 31, 2026
39 yea, 10 nay (2 not voting, 3 excused)
Topics
- auto insurance regulation
- insurance refunds
- ambulance billing
- life insurance policyholder rights
- surprise medical billing