HB 1274: Auto Insurance Excess Profits Act; enact

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.

• 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.

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.

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.

• 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.

1. 2026-03-31Senate Tabled (Senate)
2. 2026-03-27Senate Read Second Time (Senate)
3. 2026-03-27Senate Committee Favorably Reported By Substitute (Senate)
4. 2026-03-03Senate Read and Referred (Senate)
5. 2026-02-26House Passed/Adopted (House)
6. 2026-02-26House Third Readers (House)
7. 2026-02-19House Committee Favorably Reported (House)
8. 2026-02-17House Second Readers (House)

• Matt Reeves (R, HD-099)Primary sponsor
• Eddie Lumsden (R, HD-012)
• Trey Kelley (R, HD-016)
• Chuck Efstration (R, HD-104)
• Soo Hong (R, HD-103)
• Michelle Au (D, HD-050)
• Marty Harbin (R, SD-016)

1. PassedHouse voteFebruary 26, 2026

   169 yea, 1 nay (6 not voting, 1 absent)

   Passage: House Vote #571

2. PassedSenate voteMarch 31, 2026

   39 yea, 10 nay (2 not voting, 3 absent)

   Motion To Table Remaining Legislation On The Rules Calendar: Senate Vote #912

• auto insurance regulation
• insurance refunds
• ambulance billing
• life insurance policyholder rights
• surprise medical billing