HR 659: House Study Committee on Insurance Market Reform; create

The House Committee on Insurance offers the following substitute to HR 659:

A RESOLUTION

Creating the House Study Committee on Insurance Market Reform; and for other purposes.

WHEREAS, the insurance market plays a crucial role in providing individuals and businesses with financial protection against unforeseen risks and losses; and

WHEREAS, premiums across multiple lines of insurance have been steadily increasing, placing an excessive and unsustainable burden on policyholders and businesses across this state; and

WHEREAS, these increasing costs have resulted in financial hardship for consumers, reducing access to essential coverage and undermining the affordability of necessary protections; and

WHEREAS, insurance companies continue to report record profits, raising concerns about the fairness and transparency of pricing models and the industry's accountability to policyholders; and

WHEREAS, excessive premium increases coupled with reduced coverage options create a destabilized market that disproportionately harms low-income and middle-income families, small businesses, and seniors on fixed incomes; and

WHEREAS, the lack of competition in the insurance industry allows dominant providers to impose unreasonable cost increases with little recourse for consumers, making regulatory scrutiny a necessity; and

WHEREAS, it is imperative to conduct a thorough examination of the insurance industry's rate-setting practices, profit margins, claims processing, and regulatory compliance to ensure that consumers are not being subjected to unjustified rate hikes; and

WHEREAS, understanding the impact of national and state insurance regulations, as well as examining successful models from other states, will enable the General Assembly to enact meaningful reforms to protect consumers from predatory pricing and ensure that the insurance market operates fairly and transparently.

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

(1) Creation of House study committee. There is created the House Study Committee on Insurance Market Reform.

(2) Members and officers. The committee shall be composed of eight members of the House of Representatives to be appointed by the Speaker of the House of Representatives. The Speaker shall also appoint three additional nonlegislative members with expertise or qualifications as determined by the Speaker. The Speaker shall designate two legislative members to serve as chairperson and vice chairperson of the committee.

(3) Powers and duties. The committee shall undertake a study of the conditions, needs, issues, and problems mentioned above or related thereto and recommend any action or legislation which the committee 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. The allowances authorized by this resolution shall not be received by any member of the committee for more than five 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.

(B) Members of the committee who are state officials, other than legislative members, or 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) Members of the committee who are not legislators, state officials, or state employees shall receive a daily expense allowance in an amount the same as that specified in subsection (b) of Code Section 45-7-21 of the Official Code of Georgia Annotated, as well as the mileage or transportation allowance authorized for state employees.

(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.