---
title: SB 505. "Georgia Prior Approval for Consumer Insurance Rates Act"; enact
collection: bills
id: 2025-2026/sb505
cite_as: SB 505, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb505
md_url: https://georgiacommons.org/bills/2025-2026/sb505.md
text_url: https://georgiacommons.org/bills/2025-2026/sb505/text
source_url: https://www.legis.ga.gov/legislation/73188
date: 2026-02-17
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 95
omitted_url: https://georgiacommons.org/bills/2025-2026/sb505.md?full=1
bill_number: SB 505
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2026-02-12
last_action: Senate Read and Referred
sponsors:
- Nabilah Islam Parkes
- Nikki Merritt
- Kim Jackson
- Nan Orrock
- Elena Parent
- Randal Mangham
- Derek Mallow
- Tonya Anderson
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB505/2025
upstream_id: 2116169
summaries_model: claude-sonnet-5
topic_tags:
- car insurance rates
- homeowners insurance
- insurance regulation
- insurance commissioner approval
- consumer protection
---
# SB 505. "Georgia Prior Approval for Consumer Insurance Rates Act"; enact
## Text
Senate Bill 505
By: Senators Parkes of the 7th, Merritt of the 9th, Jackson of the 41st, Orrock of the 36th,
Parent of the 44th 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
regulation of rates, underwriting rules, and related organizations, so as to require that private
passenger motor vehicle and residential property insurance premium rates must be approved
by the Commissioner prior to use; to provide for certain standards; to provide for certain
information to be included in rate filings; to provide for definitions; to provide for
considerations; to provide for classifications; to prohibit certain practices; to provide for risk
classifications and modifications; to provide for construction; to provide for certain public
disclosures; to provide for public hearings in certain circumstances; to provide for related
matters; to provide for a short title; to provide for an effective date and applicability; 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 "Georgia Prior Approval for Consumer
Insurance Rates Act."
SECTION 2.
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 33-9-4, relating to standards applicable to making and use of rates, as follows:
"33-9-4.
Excluding personal private passenger motor vehicle and residential property, the The
following standards shall apply to the making and use of rates pertaining to all classes of
insurance to which this chapter is applicable:
(1) Rates shall not be excessive or inadequate, as defined in this Code section, nor shall
they be unfairly discriminatory;
(2) No rate shall be held to be excessive unless such rate is unreasonably high for the
insurance provided and a reasonable degree of competition does not exist in the area with
respect to the classification to which such rate is applicable; provided, however, with
respect to rate filings involving an increase in rates, no rate for personal private passenger
motor vehicle insurance shall be held to be excessive unless such rate is unreasonably
high for the insurance provided and a reasonable degree of competition does not exist;
(3) No rate shall be held inadequate unless it is unreasonably low for the insurance
provided and continued use of it would endanger solvency of the insurer, or unless the
use of such rate by the insurer using such rate has, or will, if continued, tend if the rate
tends to destroy competition or create a monopoly;
(4) Consideration shall be given to the extent applicable to past and prospective loss
experience within and outside this state, to conflagration and catastrophe hazards, to a
reasonable margin for underwriting profit and contingencies, to past and prospective
expenses both country wide and those specially applicable to this state, to the insurer's
average yield from investment income, and to all other factors, including judgment
factors, deemed relevant within and outside this state; and, in the case of fire insurance
rates, consideration may be given to the experience of the fire insurance business during
the most recent five-year period;
(5) Consideration may also be given, in the making and use of rates, to dividends,
savings, or unabsorbed premium deposits allowed or returned by insurers to their
policyholders, members, or subscribers;
(6) The systems of expense provisions included in the rates for use by any insurer or
group of insurers may differ from those of other insurers or groups of insurers to reflect
the operating methods of any such insurer or group with respect to any kind of insurance
or with respect to any subdivision or combination thereof;
(7) Risks may be grouped by classifications for the establishment of rates and minimum
premiums. Classification rates may be modified to produce rates for individual risks in
accordance with rating plans which establish standards for measuring variations in
hazards or expense provisions, or both. Such standards may measure any difference
among risks that have a probable effect upon losses or expenses. Classifications or
modifications of classifications of risks may be established based upon size, expense,
management, individual experience, location or dispersion of hazard, or any other
reasonable considerations. Such classifications and modifications shall apply to all risks
under the same or substantially the same circumstances or conditions; provided, however,
the Commissioner shall establish the maximum amount of any such modification; and
(8) Nothing contained in this Code section or elsewhere in this chapter shall be construed
to repeal or modify Chapter 6 of this title, relating to unfair trade practices, and any rate,
rating classification, rating plan or schedule, or variation thereof established in violation
of Chapter 6 of this title shall, in addition to the consequences stated in Chapter 6 of this
title or elsewhere, be deemed violative of this Code section;
(9) No insurer shall base any standard or rating plan on vehicle insurance, in whole or
in part, directly or indirectly, upon race, creed, or ethnic extraction; and
(10) No insurer shall base any standard or rating plan on vehicle insurance, in whole or
in part, directly or indirectly, upon any physical disability of an insured unless the
disability directly impairs the ability of the insured to drive a motor vehicle."
SECTION 3.
Said chapter is further amended by revising Code Section 33-9-21, relating to maintenance
and filing rates, rating plans, rating systems, or underwriting rules and examination of claim
reserve practices by the Commissioner, as follows:
"33-9-21.
(a) As used in this Code section, the term:
(1) 'Personal lines insurance' means private passenger motor vehicle insurance and
residential property insurance.
(2) 'Rate filing' means any filing proposing a new rate, rating plan, rating rule, rating
territory, classification, surcharge, algorithm, or modification thereof that affects the
premium charged to policyholders.
(a)(b) Every insurer shall maintain with the Commissioner copies of the rates, rating plans,
rating systems, underwriting rules, and policy or bond forms used by it. The maintenance
of rates, rating plans, rating systems, underwriting rules, and policy or bond forms with the
Commissioner by a licensed rating organization of which an insurer is a member or
subscriber will be sufficient compliance with this Code section for any insurer maintaining
membership or subscriberships in such organization, to the extent that the insurer uses the
rates, rating plans, rating systems, underwriting rules, and policy or bond forms of such
organization; provided, however, that the Commissioner, when he or she deems it
necessary, without compliance with the rule-making procedures of this title or Chapter 13
of Title 50, the 'Georgia Administrative Procedure Act':
(1) May require any domestic, foreign, and alien insurer to file the required rates, rating
plans, rating systems, underwriting rules, and policy or bond forms used independent of
any filing made on its behalf or as a member of a licensed rating organization, as the
Commissioner shall deem to be necessary to ensure compliance with the standards of this
chapter and Code Section 34-9-130 and for the best interests of the citizens of this state;
and
(2) Shall require each domestic, foreign, and alien insurer, writing or authorized to write
workers' compensation insurance in this state, to file such insurer's own individual rate
filing for rates to be charged for workers' compensation insurance coverage written in this
state. Such rates shall be developed and established based upon each individual insurer's
experience in the State of Georgia this state to the extent actuarially credible. The
experience filed shall include the loss ratios, reserves, reserve development information,
expenses, including commissions paid and dividends paid, investment income, pure
premium data adjusted for loss development and loss trending, profits, and all other data
and information used by that insurer in formulating its workers' compensation rates which
are used in this state and any other information or data required by the Commissioner.
In establishing and maintaining loss reserves, no workers' compensation insurer shall be
allowed to maintain any excess loss reserve for any claim or potential claim for more than
90 days after the amount of liability for such claim or potential claim has been
established, whether by final judgment, by settlement agreement, or otherwise. Such This
limitation on the maintenance of loss reserves shall be enforced through this Code
section, as well as through Code Section 33-9-23, relating to examination of admitted
insurers, and any other appropriate enforcement procedures. The Commissioner is
authorized to accept such rate classifications as are reasonable and necessary for
compliance with this chapter. A rate filing required by this paragraph shall be updated
by the insurer at least once every two years; and.
(3) As used in this paragraph (2) of this subsection, the term 'excess loss reserve' means
any reserve amount in excess of the reserve required by law.
(b)(c) Any domestic, foreign, or alien insurer that is authorized to write insurance in this
state must file with the Commissioner any rate, rating plan, rating system, or underwriting
rule for all personal private passenger motor vehicle lines insurance:.
(1) For private passenger motor vehicle insurance providing only the mandatory
minimum limits required by Code Section 33-34-4 and subsection (a) of Code Section
40-9-37, no such rate, rating plan, rating system, or underwriting rule shall become
effective, nor may any premium be collected by any insurer thereunder, unless the filing
has been received by the Commissioner in his or her office and such filing has been
approved by the Commissioner or a period of 45 days has elapsed from the date such
filing was received by the Commissioner during which time such filing has not been
disapproved by the Commissioner. The Commissioner shall be authorized to extend such
45 day period by no more than 55 days at his or her discretion. If a filing is disapproved,
notice of such disapproval order shall be given within 100 days of receipt of filing by the
Commissioner, specifying in what respects such filing fails to meet the requirements of
this chapter. The filer shall be given a hearing upon written request made within 30 days
after the issuance of the disapproval order, and such hearing shall commence within 30
days after such request unless postponed by mutual consent. Such hearing, once
commenced, may be postponed or recessed by the Commissioner only for weekends,
holidays, or after normal working hours or at any time by mutual consent of all parties
to the hearing. The Commissioner may also, at his or her discretion, recess any hearing
for not more than two recess periods of up to 15 consecutive days each. In connection
with any hearing or judicial review with respect to the approval or disapproval of such
rates, the burden of persuasion shall fall upon the affected insurer or insurers to establish
that the challenged rates are adequate, not excessive, and not unfairly discriminatory.
After such a hearing, the Commissioner must affirm, modify, or reverse his or her
previous action within the time period provided in subsection (a) of Code Section 33-2-23
relative to orders of the Commissioner. The requirement of approval or disapproval of
a rate filing by the Commissioner under this subsection shall not prohibit actions by the
Commissioner regarding compliance of such rate filing with the requirements of Code
Section 33-9-4 brought after such approval or disapproval.
(2) For personal private passenger motor vehicle insurance other than that described in
paragraph (1) of this subsection, such rate, rating plan, rating system, or underwriting rule
for all such personal private passenger motor vehicle insurance shall be effective 60 days
after such filing and shall be implemented without approval of the Commissioner, unless
an earlier effective date is authorized by the Commissioner or a later effective date is
specified by the insurer. This paragraph shall apply to the entire personal private
passenger motor vehicle insurance policy with limits above the mandatory minimum
required by Code Section 33-34-4 and subsection (a) of Code Section 40-9-37 and shall
apply to the entire personal private passenger motor vehicle policy with minimum limits
if such policy has any additional nonmandatory coverage or coverages.
(3) Notwithstanding the provisions of paragraphs (1) and (2) of this subsection, an
insurer may, but shall not be required to, file its rate, rating plan, rating system, or
underwriting rule for all such personal private passenger motor vehicle insurance
provided for in paragraphs (1) and (2) of this subsection under the filing process of
paragraph (1) of this subsection.
(c) When a rate filing of an insurer required under paragraph (1) of subsection (b) of this
Code section is not accompanied by the information upon which the insurer supports the
filing and the Commissioner does not have sufficient information to determine whether the
filing meets the requirements of this chapter, then the Commissioner shall request in
writing, within 20 days of the date he or she receives the filing, the specifics of such
additional information as he or she requires, and the insurer shall be required to furnish
such information, and in such event the 45 day period provided for in paragraph (1) of
subsection (b) of this Code section shall commence as of the date such information is
furnished.
(d) Any domestic, foreign, or alien insurer that is authorized to write insurance in this state
must file with the Commissioner any rate, rating plan, rating system, or underwriting rule
at least 45 days prior to any indicated effective date for all insurance other than personal
private passenger motor vehicle insurance. No rate, rating plan, rating system, or
underwriting rule required to be filed under this subsection will become effective, nor may
any premium be collected by any insurer thereunder, unless the filing has been received by
the Commissioner in his office not less than 45 days prior to its effective date.
(e) When a rate filing of an insurer required under subsection (d) of this Code section
results in any overall rate increase of 10 percent or more within any 12 month period, the
Commissioner shall order an examination of that insurer to determine the accuracy of the
claim reserves, the applicability of the claim reserve practices for the loss data used in
support of such filing, and any other component of the rate filing; provided, however, that
in the event the overall increase is less than 25 percent within any 12 month period and the
Commissioner affirmatively determines that he or she has sufficient information to evaluate
such rate increase and that the cost thereof would not be justified, he or she may waive all
or part of such examination. In all other rate filings required under subsection (d) of this
Code section, the Commissioner may order an examination of that insurer as provided in
this subsection. Such examination shall be conducted in accordance with the provisions
of Chapter 2 of this title. Upon notification by the Commissioner of his or her intent to
conduct such examination, the insurer shall be prohibited from placing the rates so filed in
effect until such examination has been reviewed and certified by the Commissioner as
being complete. Such examination, if conducted by the Commissioner, shall be reviewed
and certified within 90 days of the date such rate, rating plan, rating system, or
underwriting rule is filed; provided, however, that if the Commissioner makes an
affirmative finding that the examination may not be completed within the 90 day period,
he or she may extend such time for one additional 60 day period. Any examination
required under this Code section shall be conducted in accordance with Chapter 2 of this
title.
(f) Notwithstanding the provisions of subsection (d) of this Code section, in the event the
filing of any rate, rating plan, rating system, or underwriting rule under subsection (d) of
this Code section is not necessary, in the judgment of the Commissioner, to accomplish the
purposes of this chapter as set forth in Code Section 33-9-1, then the Commissioner may
exempt all domestic, foreign, and alien insurers from being required to file such rate, rating
plan, rating system, or underwriting rule.
(g) Filings required pursuant to this Code section shall be accompanied by a fee or fees as
provided in Code Section 33-8-1.
(d) No insurer shall charge, use, or implement any rate filing for personnel lines insurance
unless such filing has been submitted to and approved in writing by the Commissioner
prior to charging, use, or implementation.
(e) Subsections (a) and (d) through (f) of this Code section apply only to all new rates,
renewal rates, rating factor changes, territory or classification changes, underwriting rules
affecting premium, and algorithmic or predictive model updates that affect the pricing of
personal lines insurance.
(f) The Commissioner shall approve a rate filing only if the insurer demonstrates to the
satisfaction of the Commissioner that the proposed rates are not:
(1) Excessive;
(2) Inadequate; and
(3) Unfairly discriminatory.
(g) A rate shall be deemed excessive if the Commissioner determines that, according to
his or her judgment, the rate will create unreasonable profits or is not supported by credible
data.
(h) A rate shall be deemed inadequate if the Commissioner determines that, according to
his or her judgment, the rate is unreasonably low for the provided coverage and would
endanger an insurer's solvency, or if the rate tends to destroy competition or create a
monopoly.
(i) A rate shall be deemed unfairly discriminatory if the Commissioner determines that
according to his or her judgment, similarly situated risks are charged materially different
premiums without actuarial justification.
(j) Each rate filing shall include:
(1) Historical loss experience;
(2) Trend and projection assumptions;
(3) Expense provisions;
(4) Profit and contingency margins;
(5) Catastrophe and reinsurance assumptions;
(6) Territory and classification support; and
(7) Such other documentation for any algorithmic or predictive models used in pricing,
including model purpose, variables, performance metrics, data sources, and bias testing.
(k) Consideration shall be given to the extent applicable to past and prospective loss
experience within and outside this state, to conflagration and catastrophe hazards, to a
reasonable margin for underwriting profit and contingencies, to past and prospective
expenses both country wide and those specially applicable to this state, to the insurer's
average yield from investment income, and to all other factors, including judgment factors,
deemed relevant within and outside this state.
(l) Consideration may also be given, in the making and use of rates, to dividends, savings,
or unabsorbed premium deposits allowed or returned by insurers to their policyholders,
members, or subscribers.
(m) The systems of expense provisions included in the rates for use by any insurer or
group of insurers may differ from those of other insurers or groups of insurers to reflect the
operating methods of any such insurer or group with respect to any kind of insurance or
with respect to any subdivision or combination thereof.
(n) Risks may be grouped by classifications for the establishment of rates and minimum
premiums. Classification rates may be modified to produce rates for individual risks in
accordance with rating plans which establish standards for measuring variations in hazards
or expense provisions, or both. Such standards may measure any difference among risks
that have a probable effect upon losses or expenses. Classifications or modifications of
classifications of risks may be established based upon size, expense, management,
individual experience, location or dispersion of hazard, or any other reasonable
considerations. Such classifications and modifications shall apply to all risks under the
same or substantially the same circumstances or conditions; provided, however, that the
Commissioner shall establish the maximum amount of any such modification.
(o) Nothing in this Code section or elsewhere in this chapter shall be construed to repeal
or modify Chapter 6 of this title, and any rate, rating classification, rating plan or schedule,
or variation thereof established in violation of such chapter shall, in addition to the
consequences stated in Chapter 6 of this title or elsewhere, be deemed in violation of this
Code section.
(p) No insurer shall base any standard or rating plan on vehicle insurance, in whole or in
part, directly or indirectly, upon race, creed, or ethnic extraction.
(q) No insurer shall base any standard or rating plan on vehicle insurance, in whole or in
part, directly or indirectly, upon any physical disability of an insured unless the disability
directly impairs the ability of the insured to drive a motor vehicle.
(r) Filings required pursuant to this Code section shall be accompanied by a fee or fees as
provided in Code Section 33-8-1.
(s) Following a rate filing, the Commissioner shall:
(1) Post a redacted version of each rate filing on the department's website. The
information posted shall be in compliance with Article 4 of Chapter 18 of Title 50,
relating to inspection of public records, and shall allow for public comments for no fewer
than 30 days; and
(2) Hold a public hearing in accordance with Chapter 13 of Title 50, the 'Georgia
Administrative Procedure Act,' if he or she determines a hearing would be in the public
interest."
SECTION 4.
This Act shall become effective July 1, 2026, and shall apply to all applicable policies,
contracts, and certificates executed, delivered, issued for delivery, or renewed in this state
on or after October 1, 2026.
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
A Georgia Senate bill would require insurers to get the state Insurance Commissioner's approval before charging new rates for private passenger car insurance and homeowners insurance, replacing the current system that lets many rate changes take effect without prior review.
### Plain-language summary
Currently, Georgia law lets most private passenger auto insurance rate changes take effect 60 days after filing without the Commissioner's approval, and it allows insurers broad flexibility in other lines. This bill, the "Georgia Prior Approval for Consumer Insurance Rates Act," rewrites O.C.G.A. §§ 33-9-4 and 33-9-21 to carve out personal lines insurance (private passenger auto and residential property) from the general rate standards and instead require the Commissioner to approve every new rate, renewal rate, rating factor change, territory or classification change, and algorithmic pricing model before it can be used.
Insurers must submit detailed documentation with each filing, including loss experience, expense and profit assumptions, catastrophe and reinsurance data, and information on any algorithmic or predictive pricing models, including bias testing. The Commissioner must post a redacted version of each filing for at least 30 days of public comment and may hold a public hearing. The law would take effect July 1, 2026, and apply to policies issued or renewed on or after October 1, 2026.
### What it does
- Requires insurers to get written approval from the Insurance Commissioner before using any new rate, rating factor, or pricing model for private passenger auto and residential property insurance.
- Removes the current 60 day automatic approval process for most private passenger auto insurance rate changes.
- Defines when a rate counts as excessive, inadequate, or unfairly discriminatory, giving the Commissioner discretion to judge whether profits are unreasonable or pricing lacks actuarial justification.
- Requires each rate filing to include loss history, expense and profit data, catastrophe assumptions, and documentation of any algorithmic or predictive pricing models, including their variables and bias testing.
- Requires the Department of Insurance to post a redacted version of each rate filing online for at least 30 days of public comment and allows the Commissioner to hold a public hearing.
- Removes older provisions setting fixed filing deadlines and examination triggers for rate increases, replacing them with the new prior approval process.
### Who it affects
Insurance companies that sell private passenger car insurance or homeowners insurance in Georgia, the state Insurance Commissioner and Department of Insurance staff who review filings, and Georgia drivers and homeowners whose premiums depend on these rate filings.
### Why it matters
Insurers would no longer be able to put new auto or homeowners insurance rates into effect automatically; they would need state sign-off first, along with detailed data including any algorithmic pricing tools. The public would get a window to comment on filings, changing how quickly and transparently rate changes reach Georgia policyholders.
### Key provisions
- Section 1 names the act the "Georgia Prior Approval for Consumer Insurance Rates Act."
- Section 2 revises O.C.G.A. § 33-9-4 to exclude personal auto and residential property insurance from the general rate-making standards, since those lines now get their own approval process.
- Section 3 revises O.C.G.A. § 33-9-21 to define 'personal lines insurance' and 'rate filing' and require Commissioner approval before any such rate can be charged or used.
- Section 3 requires each personal lines rate filing to include loss experience, trend assumptions, expense and profit margins, catastrophe assumptions, and documentation of algorithmic or predictive pricing models.
- Section 3 requires the Department of Insurance to post redacted filings online for at least 30 days of public comment and allows the Commissioner to hold a public hearing under the Georgia Administrative Procedure Act.
- Section 3 removes the prior law's fixed 45 and 60 day filing timelines and mandatory examination triggers for large rate increases.
- Section 4 sets the effective date as July 1, 2026, applying to policies issued or renewed on or after October 1, 2026.
## Status
- Status: Introduced (2026-02-12)
- Last action: Senate Read and Referred (2026-02-17)
- Sponsors: Nabilah Islam Parkes, Nikki Merritt, Kim Jackson, Nan Orrock, Elena Parent, Randal Mangham, Derek Mallow, Tonya Anderson
- Official page: https://www.legis.ga.gov/legislation/73188
> The history, votes, and amendments (95 characters) are at https://georgiacommons.org/bills/2025-2026/sb505.md?full=1