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

26 LC 52 0959 House Bill 1262 By: Representatives Lumsden of the 12th, Reeves of the 99th, Taylor of the 173rd, Gambill of the 15th, Williamson of the 112th, and others A BILL TO BE ENTITLED AN ACT To amend Title 33 of the Official Code of Georgia Annotated, relating to insurance, so as to1 increase the amount of monetary penalties the Commissioner of Insurance is authorized to2 impose for violations of the Georgia Insurance Code relative to mental health parity, general3 enforcement authority, surprise billing, and prepaid legal serv ices plans; to provide for4 related matters; to provide for an effective date; to repeal co nflicting laws; and for other5 purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Title 33 of the Official Code of Georgia Annotated, relating to insurance, is amended in9 Chapter 1, relating to general provisions, by revising paragraph (1) of subsection (i) of Code10 Section 33-1-27, relating to insurance coverage for mental heal th and substance abuse11 disorders, compliance with mental health parity requirements, complaints and violations, and12 appointment of mental health parity officer, as follows:13 "(i)(1) If the Commissioner determines that a health insurer failed to submit a timely14 or sufficient report required under paragraph (4) of subsection (b) of this Code section15 or failed to submit timely and sufficient data pursuant to a data call conducted pursuant16 H. B. 1262 - 1 - 26 LC 52 0959 to paragraph (1) of subsection (c) of this Code section, the Commissioner may impose17 a monetary penalty of up to $2,000.00 $10,000.00 for each and every act in violation,18 unless the insurer knew or reas onably should have known that he or she was in19 violation, in which case the monetary penalty may be increased to an amount of up to20 $5,000.00 $25,000.00 for each and every act in violation."21 SECTION 2.22 Said title is further amended in Chapter 2, relating to Departm ent and Commissioner, by23 revising subsection (g) of Code Section 33-2-24, relating to enforcement of title and rules,24 regulations, and orders, issuance of orders without hearings, civil actions, criminal violations,25 and penalties, as follows:26 "(g) In addition to all other penalties provided for under this title, the Commissioner shall27 have the authority:28 (1) To place any person duly licensed under this title on probation for a period of time29 not to exceed one year for each and every act in violation of t his title or of the rules,30 regulations, or orders of the Commissioner; and31 (2) To subject any person duly licensed or that should be lice nsed under this title to a32 monetary penalty of up to $2,000.00 $10,000.00 for each and every act in violation of this33 title or of the rules, regulations, or orders of the Commissioner, unless such person knew34 or reasonably should have known he or she was in violation of this title or of the rules,35 regulations, or orders of the Commissioner, in which case the monetary penalty provided36 for in this paragraph may be increased to an amount up to $5,000.00 $25,000.00 for each37 and every act in violation."38 H. B. 1262 - 2 - 26 LC 52 0959 SECTION 3.39 Said title is further amended in Chapter 20E, relating to the " Surprise Billing Consumer40 Protection Act," by revising subsection (a) of Code Section 33- 20E-26, relating to41 enforcement and monetary penalties, as follows:42 "(a) For each and every act in violation of Code Section 33-20E -24, the Commissioner43 may impose a monetary penalty of up to $2,000.00 $10,000.00, unless the insurer knew or44 reasonably should have known of the violation, in which case th e monetary penalty45 imposed may be up to $5,000.0 $25,000.00 for each and every act in violation."46 SECTION 4.47 Said title is further amended in Chapter 35, relating to prepai d legal services plans, by48 revising subsection (c) of Code Section 33-35-7, relating to gr ounds and procedure for49 revocation, suspension, or refusal to renew licenses, impositio n of probation or fine, and50 review, as follows:51 "(c) In lieu of revoking, suspending, or refusing to renew the license for any of the causes52 enumerated in subsection (a) of this Code section, after any hearing as provided in this53 subsection the Commissioner may place the sponsor on probation for a period of time not54 to exceed one year or may fine the sponsor not more than $2,000.00 $10,000.00 for each55 offense, or do both, when, in the Commissioner's judgment he or she finds that the public56 interest would not be harmed by the continued operation of the sponsor. The amount of57 any penalty shall be paid by such sponsor to the Commissioner for the use of the state."58 SECTION 5.59 This Act shall become effective upon its approval by the Governor or upon its becoming law60 without such approval.61 H. B. 1262 - 3 - 26 LC 52 0959 SECTION 6.62 All laws and parts of laws in conflict with this Act are repealed.63 H. B. 1262 - 4 -