HR 40: House Study Committee on Reinsurance for Essential Industries; create

The House Committee on Rules offers the following substitute to HR 40:

A RESOLUTION

Creating the House Study Committee on Reinsurance for Essential Industries; and for other purposes.

WHEREAS, continual increases in both the frequency and severity of claims will increase the cost of the property and casualty reinsurance market, which results in higher premiums and lower coverage; and

WHEREAS, commercial property and casualty insurance brokers have reported quarterly price increases of an average of six percent, which can pressure insured entities to purchase inadequate products that do not reflect their actual exposure; and

WHEREAS, the National Association of Insurance Commissioners states that rising claims costs driven primarily by increased frequency of severe storms and rising replacement costs continued to challenge United States property and casualty insurers; and

WHEREAS, these increasing prices disproportionally affect small businesses who may be forced to purchase lower limits that do not cover their replacement costs; and

WHEREAS, Georgia Commissioner of Agriculture Tyler Harper and Governor Brian P. Kemp, the University of Georgia College of Agricultural and Environmental Sciences, and the Georgia Forestry Commission announced the preliminary estimate of Hurricane Helene's economic impact on Georgia agriculture is $6.46 billion; and

WHEREAS, Georgia Commissioner of Agriculture Tyler Harper stated, "The future is uncertain for thousands of Georgia farmers and farm families who were devastated by Hurricane Helene"; and

WHEREAS, increased capacity in Georgia's commercial property and casualty reinsurance market will significantly reduce the overhead costs for all businesses, especially small businesses.

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES:

(1) Creation of House study committee. There is created the House Study Committee on Reinsurance for Essential Industries.

(2) Members and officers.

(A) The committee shall be composed of seven members.

(B) The Speaker of the House of Representatives shall appoint five members of the House of Representatives who are members of the House Committee on Insurance.

(C) The Speaker shall also appoint an additional two nonlegislative members of the committee as follows:

(i) The Commissioner of Insurance, or his or her designee; and

(ii) The Commissioner of Agriculture, or his or her designee.

(D) The Speaker shall also designate a legislative member of the committee as chairperson of the committee.

(3) Powers and duties.

(A) The committee shall undertake a study of the conditions, needs, issues, and problems mentioned above and the terms and conditions necessary for public-private partnerships in Georgia's commercial property and casualty reinsurance market, under which the Georgia Department of Insurance will calculate reinsurance payments to issuers participating in Georgia's Reinsurance for Essential Industries Program.

(B) The committee shall identify:

(i) Ways in which the state can facilitate special risk pools with public-private funds;

(ii) The approximate amount of funding necessary for premium reductions for special risk pools;

(iii) Criteria to identify essential industries of strategic interest in the state facilitated special risk pools; and

(iv) Industries whose premium reductions would be the most beneficial for Georgia's economy.

(C) The committee shall recommend any action or legislation which it deems necessary or appropriate.

(4) Meetings. The chairperson shall call all meetings of the committee. The committee may conduct such meetings at such places and at such times as it may deem necessary or convenient to enable it to exercise fully and effectively its powers, perform its duties, and accomplish the objectives and purposes of this resolution.

(5) Allowances, expenses, and funding.

(A) The legislative members of the committee shall receive the allowances provided for in Code Section 28-1-8 of the Official Code of Georgia Annotated.

(B) Members of the committee who are state officials, other than legislative members, or who are state employees shall receive no compensation for their services on the committee, but they may be reimbursed for expenses incurred by them in the performance of their duties as members of the committee in the same manner as they are reimbursed for expenses in their capacities as state officials or employees.

(C) The allowances authorized by this resolution shall not be received by any member of the committee for more than three days unless additional days are authorized. Funds necessary to carry out the provisions of this resolution shall come from funds appropriated to the House of Representatives; except that funds for the reimbursement of the expenses of state officials, other than legislative members, and for the reimbursement of the expenses of state employees shall come from funds appropriated to or otherwise available to their respective agencies.

(6) Report.

(A) In the event the committee adopts any specific findings or recommendations that include suggestions for proposed legislation, the chairperson shall file a report of the same prior to the date of abolishment specified in this resolution, subject to subparagraph (C) of this paragraph.

(B) In the event the committee adopts a report that does not include suggestions for proposed legislation, the chairperson shall file the report, subject to subparagraph (C) of this paragraph.

(C) No report shall be filed unless the same has been approved prior to the date of abolishment specified in this resolution by majority vote of a quorum of the committee. A report so approved shall be signed by the chairperson of the committee and filed with the Clerk of the House of Representatives.

(D) In the absence of an approved report, the chairperson may file with the Clerk of the House of Representatives a copy of the minutes of the meetings of the committee in lieu thereof.

(7) Abolishment. The committee shall stand abolished on December 1, 2025.