HB 1058: Insurance; authorize tax-exempt organizations to be beneficiaries of employee group life insurance policies

Under current Georgia law, group life insurance policies bought by an employer for its employees generally must benefit someone other than the employer itself; the employer typically cannot be named the beneficiary. This bill carves out an exception: if the employer is a tax-exempt organization under Section 501(c)(3) of the federal tax code, and the insured employee designates that employer in writing as the beneficiary, the employer can then be named on the policy. The bill also makes small wording updates elsewhere in the same code section, adding gender-neutral language ('or she') and swapping the word 'must' for 'shall' in a few requirements about minimum coverage, insurability, and how coverage amounts are set. These are technical clarifications rather than substantive policy changes. The bill repeals any conflicting laws and does not state a delayed effective date.

• Creates an exception letting a 501(c)(3) tax-exempt employer be named as the beneficiary of an employee's group life insurance policy, if the employee designates it in writing.
• Leaves in place the general rule that group life policies must benefit someone other than the employer, except for this new nonprofit exception.
• Updates gender references in the law covering proprietors and partners eligible for group coverage, adding 'or she' alongside 'he'.
• Replaces the word 'must' with 'shall' in provisions about insuring eligible employees, minimum group size, and how coverage amounts are determined, without changing their substance.
• Repeals any other Georgia laws that conflict with these changes.

Nonprofit and charitable organizations organized as 501(c)(3) entities that offer group life insurance to their employees, the employees who can now choose to name their employer as a beneficiary, and insurance companies that write group life policies for these organizations.

Employees at qualifying nonprofits would gain the option to designate their tax-exempt employer as the beneficiary of their group life insurance, something current law does not allow. This could let nonprofits receive insurance payouts tied to an employee's death, if the employee chooses to set it up that way.

• Section 1 amends O.C.G.A. § 33-27-1(1), the definition of employee groups eligible for group life insurance, to add the tax-exempt organization beneficiary exception.
• The exception applies only if the employer qualifies as a 501(c)(3) tax-exempt organization and the insured employee designates it as beneficiary in writing.
• Other structural requirements for group policies are preserved: coverage of all employees in a class, minimum of two employees at issue, and no individual selection in setting coverage amounts.
• Section 2 repeals any conflicting laws, a standard provision with no independent policy effect.

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

• Debbie Buckner (D, HD-137)Patrocinador principal
• 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
• employee benefits
• insurance law