HB1058: HB1058 Insurance; authorize tax-exempt organizations to be beneficiaries of employee group life insurance policies

Under current Georgia law, group life insurance policies issued to an employer must benefit someone other than the employer, such as the employee's family. This bill changes Georgia's group life insurance law (O.C.G.A. § 33-27-1) to add an exception: if the employer qualifies as a tax-exempt organization under Section 501(c)(3) of the federal tax code, and the insured employee designates that organization as beneficiary in writing, the policy can name the employer itself as the beneficiary. The bill also updates some outdated phrasing in the same section, changing 'must' to 'shall' in a few places, but does not otherwise change the existing rules about which employees are eligible, how premiums are paid, or the minimum group size of two employees. The bill repeals any conflicting laws and does not list a special effective date beyond the standard process.

• Creates an exception letting a 501(c)(3) tax-exempt organization that employs a worker be named as the beneficiary of that worker's group life insurance policy.
• Requires the insured employee to designate the tax-exempt employer as beneficiary in writing before the exception applies.
• Leaves in place existing rules on which employees can be covered, premium payment sources, minimum group size, and anti-selection requirements for the policy.
• Repeals any existing Georgia laws that conflict with this change.

Nonprofit and other tax-exempt organizations that offer group life insurance to their employees, employees who work for those organizations and may choose to name their employer as beneficiary, and insurance companies that issue group life policies in Georgia.

Employees at qualifying nonprofits could choose to direct their group life insurance payout to their employer organization instead of a family member or other person, which is not currently allowed under Georgia's group life insurance rules. This gives nonprofit employers a new potential source of insurance-based funding tied to employee consent.

• Section 1 amends O.C.G.A. § 33-27-1(1), the general requirements for employee group life insurance policies.
• The amendment adds a carve-out allowing the employer to be the beneficiary only if it is a 501(c)(3) tax-exempt organization and the employee designates it in writing.
• Subparagraphs (A) through (D), covering eligible employee classes, premium sources, minimum coverage of two employees, and anti-selection plan design, remain otherwise unchanged aside from wording updates.
• Section 2 repeals any conflicting laws.

1. 2026-02-24House Committee Favorably Reported By Substitute (House)
2. 2026-02-02House Second Readers (House)
3. 2026-01-29House First Readers (House)
4. 2026-01-28House Hopper (House)

• Debbie Buckner (D, HD-137)Primary sponsor
• Vance Smith (R, HD-138)
• Beth Camp (R, HD-135)
• Carmen Rice (R, HD-139)
• Leesa Hagan (R, HD-156)
• Mary Oliver (D, HD-084)

• group life insurance
• nonprofit organizations
• insurance law
• employee benefits