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.