Georgia CommonsSB 364: Insurers; new penalties for insurers that knowingly give false or misleading information to the Commissioner of Insurance; provide
Introduced version, the latest LegiScan holds · Last action March 28, 2025 · Introduced
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Underlined words are what the bill adds to current law and struck-through words are what it removes, as the printed bill shows them.
Senate Bill 364
By: Senators Hatchett of the 50th, Strickland of the 42nd, Tillery of the 19th, Summers of the 13th, Robertson of the 29th and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 9 of Title 33 of the Official Code of Georgia Annotated, relating to regulations of rates, underwriting rules, and related organizations, so as to provide for new penalties for insurers that knowingly give false or misleading information to the Commissioner of Insurance and such information affected insurance premium rates; to provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 9 of Title 33 of the Official Code of Georgia Annotated, relating to regulation of rates, underwriting rules, and related organizations, is amended by revising Code Section 33-9-29, relating to issuance of remedial orders by Commissioner generally and suspension or revocation of certificate of authority or license, as follows:
"33-9-29.
If after a hearing pursuant to Code Section 33-9-28 the Commissioner finds:
(1) That any rate, rating plan, or rating system violates the applicable provisions of this chapter, he or she may issue an order to the insurer or rating organization which has been the subject of the hearing specifying in what respects the violation exists and stating when, within a reasonable period of time, the further use of the rate or rating system by the insurer or rating organization in contracts of insurance made thereafter shall be prohibited and may further order that the portion of premiums received from current policyholders as a result of the most recent rate increase at the time the notice of such hearing is issued shall be refunded to the policyholders;
(2) That an insurer, rating organization, advisory organization, or similar organization by another name willfully withheld information from, or knowingly gave false or misleading information to, the Commissioner in an attempt to affect the rates, rating systems, or premiums approved or allowed by the Commissioner, the Commissioner may further order that such organization pay the department up to ten times the amount in fines that such organization is required to refund policyholders in accordance with paragraph (1) of this Code section. Such authority shall be in addition to all of the Commissioner's other authority to impose fines under this title; (2)(3) That an insurer, rating organization, advisory organization, or a group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance is in violation of the provisions of this chapter applicable to it other than the provisions dealing with rates, rating plans, or rating system, he or she may issue an order to the insurer, organization, group, or association which has been the subject of the hearing specifying in what respects the violation exists and requiring compliance within a reasonable time thereafter;
(3)(4) That the violation of this chapter applicable to it by any insurer or rating organization which has been the subject of the hearing was willful, he or she may suspend or revoke, in whole or in part, the certificate of authority of each insurer or the license of each rating organization with respect to the class of insurance which has been the subject matter of the hearing; or
(4)(5) That any rating organization has willfully engaged in any fraudulent or dishonest act or practices, he or she may suspend or revoke, in whole or in part, the license of the organization in addition to any other penalty provided in this chapter."
SECTION 2.
All laws and parts of laws in conflict with this Act are repealed.