---
title: HB 606. FAIR Plan Stabilization Act; enact
collection: bills
id: 2025-2026/hb606
cite_as: HB 606, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb606
md_url: https://georgiacommons.org/bills/2025-2026/hb606.md
text_url: https://georgiacommons.org/bills/2025-2026/hb606/text
source_url: https://www.legis.ga.gov/legislation/70734
date: 2025-02-27
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb606.md?full=1
bill_number: HB 606
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-24
last_action: House Second Readers
sponsors:
  - Marvin Lim
  - Karen Lupton
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB606/2025
upstream_id: 1982021
summaries_model: claude-sonnet-5
topic_tags:
  - property insurance
  - FAIR Plan
  - insurance regulation
  - insurance risk pooling
---

# HB 606. FAIR Plan Stabilization Act; enact

## Text

House Bill 606
By: Representatives Lim of the 98th and Lupton of the 83rd
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 33 of Title 33 of the Official Code of Georgia Annotated, relating to fair
access to insurance requirements, so as to authorize the directors of the underwriting
association affiliated with the Fair Access to Insurance Requirements (FAIR) Plan to, subject
to the Commissioner's approval, redistribute risks to insurers in the plan on a more equitable
basis; to provide for a short title; to provide legislative findings; to provide for an effective
date; to provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "FAIR Plan Stabilization Act."
SECTION 2.
The General Assembly finds that:
(1) Each insurer writing property insurance in this state is required to be a member of an
assigned risk pool (the FAIR Plan) and its affiliated underwriting association;
(2) The FAIR Plan is designed to provide property insurance to individuals and businesses
that are unable to obtain coverage through the private market;
(3) The FAIR Plan is backed by insurers licensed in Georgia who currently share the
profits, losses, and expenses of the assigned risk pool proportionally to their market share;
and
(4) Allowing risk to be spread more broadly may reduce individual insurer exposure,
further stabilize the FAIR Plan, and decrease the incentive for insurers to cherry-pick
low-risk policies.
SECTION 3.
Chapter 33 of Title 33 of the Official Code of Georgia Annotated, relating to fair access to
insurance requirements, is amended by revising Code Section 33-33-3, relating to
requirement of participation in plan by property insurers, as follows:
"33-33-3.
(a) Each insurer authorized to write and writing property insurance in this state shall be
required to become and remain a member of the plan and the underwriting association and
to comply with the requirements of the plan and the underwriting association as a condition
of its authority to transact property insurance business.
(b) Each insurer shall participate in the writings, expenses, profits, and losses of the
association in the following manner:
(1) For habitational risks, the same proportion as its habitational premiums written bear
to the aggregate habitational premiums written by all insurers in the program; <del>and
</del> (2) For commercial risks, the same proportion as its commercial premiums written bear
to the aggregate commercial premiums written by all insurers in the program; <ins>and
(3) Notwithstanding paragraphs (1) and (2) of this subsection, each insurer shall
participate in the writings, expenses, profits, and losses of the association as provided for
by equitable distribution in accordance with subsection (d) of Code Section 33-33-4."
</ins>
SECTION 4.
Said chapter is further amended by revising Code Section 33-33-4, relating to powers of
commissioner generally, as follows:
"33-33-4.
(a) The directors of the association shall submit to the Commissioner, for review, a
proposed Fair Access to Insurance Requirements Plan and articles of association consistent
with this chapter.
(b) The Fair Access to Insurance Requirements Plan and articles of association shall be
subject to approval by the Commissioner and shall take effect ten days after having been
approved by the Commissioner. If the Commissioner disapproves all or any part of the
proposed plan and articles, the directors of the association shall within 30 days submit for
review an appropriately revised plan and articles; and, if the directors fail to do so, the
Commissioner shall thereafter promulgate such plan and articles consistent with this
chapter.
(c) The directors of the association may, on their own initiative or at the request of the
Commissioner, amend the plan and articles, subject to approval by the Commissioner.
<ins>(d) The directors of the association may, subject to the approval of the Commissioner,
provide for the equitable redistribution of risks provided for in this chapter by means of
assignments to members of the Fair Access to Insurance Requirements Plan. If such
equitable redistribution is not implemented as provided in this subsection, all risks shall be
distributed as described in paragraphs (1) and (2) of subsection (b) of Code Section
33-33-3."
</ins> SECTION 5.
This Act shall become effective on January 1, 2026.
SECTION 6.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

House Bill 606 would let the board that runs Georgia's FAIR Plan, the insurer of last resort for property owners who can't get coverage elsewhere, spread risk among member insurers more evenly, with the state insurance commissioner's approval.

### Plain-language summary

Georgia law requires every insurer that writes property insurance in the state to belong to the FAIR Plan (Fair Access to Insurance Requirements), an assigned-risk pool that provides coverage to people and businesses who can't find it on the private market. Currently, insurers share the plan's profits, losses, and expenses based on their share of the property insurance market. HB606 keeps that market-share formula as the default but adds a new option: the plan's board of directors can redistribute those risks among member insurers on a more equitable basis, as long as the state insurance commissioner approves.
The bill amends two sections of Georgia's FAIR Plan law (O.C.G.A. §§ 33-33-3 and 33-33-4) to allow this alternative distribution method. If the board and commissioner don't put an equitable redistribution plan in place, insurers fall back to sharing risk strictly by market share, as before. The General Assembly states in the bill's findings that spreading risk more broadly could reduce any single insurer's exposure and discourage insurers from avoiding riskier policies. The law would take effect January 1, 2026.

### What it does

- Gives the FAIR Plan's underwriting association directors authority to redistribute insurance risks among member insurers on a more equitable basis, subject to the insurance commissioner's approval.
- Keeps the existing rule that insurers share the plan's writings, expenses, profits, and losses proportional to their market share, but makes it a fallback if no equitable redistribution plan is adopted.
- Amends O.C.G.A. § 33-33-4 to explicitly authorize the commissioner to approve an equitable redistribution of risk through assignments to plan members.
- States legislative findings that broader risk-sharing could stabilize the FAIR Plan and reduce insurers' incentive to avoid low-risk policies only, informing the intent behind the changes.
- Sets the effective date for these changes as January 1, 2026.

### Who it affects

Insurers licensed to write property insurance in Georgia, since all are required to belong to the FAIR Plan; the FAIR Plan's underwriting association and its board of directors; the state insurance commissioner, who must approve any redistribution plan; and indirectly, property owners and businesses who rely on the FAIR Plan for coverage.

### Why it matters

By letting risk be spread more evenly across insurers rather than strictly by market share, the bill could change how much individual insurers pay toward the FAIR Plan's losses, potentially affecting their willingness to write policies for higher-risk properties covered by the plan.

### Key provisions

- Section 1 names the bill the 'FAIR Plan Stabilization Act.'
- Section 2 lists legislative findings describing the current market-share-based system and the rationale for allowing broader risk redistribution.
- Section 3 revises O.C.G.A. § 33-33-3 to make market-share-based sharing of writings, expenses, profits, and losses subject to an equitable distribution option under Section 33-33-4(d).
- Section 4 revises O.C.G.A. § 33-33-4 to authorize the association's directors, with the commissioner's approval, to redistribute risks by assigning them to plan members, with market-share sharing as the default if no such plan is adopted.
- Section 5 sets the effective date as January 1, 2026.
- Section 6 repeals conflicting laws.

## Status

- Status: Introduced (2025-02-24)
- Last action: House Second Readers (2025-02-27)
- Sponsors: Marvin Lim, Karen Lupton
- Official page: https://www.legis.ga.gov/legislation/70734

> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb606.md?full=1