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 <ins>or she</ins> 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;
<ins>(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;
</ins> <del>(2)(3)</del> 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 <ins>or she</ins> 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;
<del>(3)(4)</del> 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 <ins>or she</ins> 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; <ins>or
</ins>
<del>(4)(5)</del> That any rating organization has willfully engaged in any fraudulent or dishonest
act or practices, he <ins>or she</ins> 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.