HB1262: HB1262 Insurance; increase amount of monetary penalties authorized to impose for certain violations of the Georgia Insurance Code

Georgia law currently caps most monetary penalties the Commissioner of Insurance can impose for various violations at $2,000 per violation, rising to $5,000 if the violator knew or should have known about the violation. This bill raises those caps significantly across four different parts of the Georgia Insurance Code. The changes apply to penalties for failing to report mental health parity compliance data, general violations of Title 33 or the Commissioner's rules and orders, violations of the Surprise Billing Consumer Protection Act, and violations by prepaid legal services plan sponsors. In each case, the standard penalty cap rises from $2,000 to $10,000 per violation, and the enhanced penalty for knowing or reckless violations rises from $5,000 to $25,000. The bill would take effect immediately upon the Governor's signature or upon becoming law without signature.

• Raises the penalty cap for insurers that fail to submit required mental health parity reports or data from $2,000 to $10,000 per violation, and from $5,000 to $25,000 for knowing violations (Section 1).
• Raises the general penalty cap the Commissioner can impose on any licensee under Title 33 from $2,000 to $10,000 per violation, and from $5,000 to $25,000 for knowing violations (Section 2).
• Raises the penalty cap for violations of the Surprise Billing Consumer Protection Act from $2,000 to $10,000, and from $5,000 to $25,000 for knowing violations (Section 3).
• Raises the maximum fine the Commissioner can impose on prepaid legal services plan sponsors from $2,000 to $10,000 per offense (Section 4).
• Sets the law to take effect as soon as the Governor signs it or it otherwise becomes law without signature (Section 5).

Health insurers subject to mental health parity reporting requirements, any person or company licensed under Georgia's insurance code, insurers covered by the surprise billing law, and sponsors of prepaid legal services plans all face higher potential fines from the Georgia Insurance Commissioner.

Insurers and other licensees that violate mental health parity, surprise billing, or other insurance rules could face fines up to five times higher than current law allows, giving the Insurance Commissioner more financial leverage to enforce compliance with Georgia's insurance regulations.

• Section 1 amends O.C.G.A. § 33-1-27 to raise mental health parity reporting violation penalties from $2,000/$5,000 to $10,000/$25,000 per act.
• Section 2 amends O.C.G.A. § 33-2-24 to raise the Commissioner's general enforcement penalty caps for any licensee violation from $2,000/$5,000 to $10,000/$25,000.
• Section 3 amends O.C.G.A. § 33-20E-26 to raise surprise billing violation penalties from $2,000/$5,000 to $10,000/$25,000 per act.
• Section 4 amends O.C.G.A. § 33-35-7 to raise the fine cap for prepaid legal services plan sponsors from $2,000 to $10,000 per offense.
• Section 5 makes the Act effective immediately upon the Governor's approval or upon becoming law without approval.
• Section 6 repeals all conflicting laws.

1. 2026-03-03Senate Read and Referred (Senate)
2. 2026-02-26House Passed/Adopted (House)
3. 2026-02-26House Third Readers (House)
4. 2026-02-19House Committee Favorably Reported (House)
5. 2026-02-12House Second Readers (House)
6. 2026-02-11House First Readers (House)
7. 2026-02-10House Hopper (House)

• Eddie Lumsden (R, HD-012)Primary sponsor
• Matt Reeves (R, HD-099)
• Darlene Taylor (R, HD-173)
• Matthew Gambill (R, HD-015)
• Bruce Williamson (R, HD-112)
• Mark Newton (R, HD-127)

1. PassedHouse voteFebruary 26, 2026

   170 yea, 1 nay (4 not voting, 2 absent)

   Passage: House Vote #573

• insurance regulation
• mental health parity
• surprise billing
• insurance penalties
• prepaid legal services