SB 364: Insurers; new penalties for insurers that knowingly give false or misleading information to the Commissioner of Insurance; provide

Georgia law already lets the Insurance Commissioner hold hearings and order refunds to policyholders when an insurer's rates violate state rules. This bill adds a new penalty aimed specifically at insurers, rating organizations, or similar groups that willfully withhold information from the Commissioner or knowingly give false or misleading information in order to affect insurance rates or premiums. Under the change, if the Commissioner finds this kind of dishonesty happened, he or she can order the organization to pay the Georgia Department of Insurance a fine of up to ten times the refund amount already owed to policyholders under existing law. The bill also renumbers the surrounding paragraphs of O.C.G.A. § 33-9-29 to fit in this new penalty and makes small wording updates elsewhere in that section. It does not set an effective date beyond standard enactment upon passage and signature, and it repeals any conflicting laws.

• Adds a new penalty allowing the Commissioner of Insurance to fine an insurer or rating organization up to ten times the refund amount owed to policyholders.
• Applies the new fine specifically when an insurer willfully withheld information or knowingly gave false or misleading information to affect rates or premiums.
• States this new fine authority is in addition to, not a replacement for, the Commissioner's existing fine powers under Title 33.
• Renumbers the existing paragraphs of O.C.G.A. § 33-9-29 to insert the new penalty provision and updates pronoun language throughout.

Insurance companies, rating organizations, advisory organizations, and similar groups that submit rate and underwriting information to the Georgia Department of Insurance, as well as Georgia policyholders whose premiums are tied to rates set through that process.

Insurers found to have lied to Georgia regulators about information affecting rates could face financial penalties far larger than the refunds already required, giving the state a stronger deterrent against rate manipulation and a bigger enforcement tool against dishonest rate filings.

• Section 1 revises O.C.G.A. § 33-9-29, which governs remedial orders and license suspension or revocation after a rate hearing.
• New paragraph (2) lets the Commissioner order an insurer or organization to pay the department up to ten times the amount it must refund to policyholders, if it willfully withheld or knowingly gave false or misleading information to affect rates or premiums.
• The bill clarifies this new fine power is 'in addition to' the Commissioner's other existing authority to impose fines under Title 33.
• Existing paragraphs on remedial orders, compliance requirements, and license suspension or revocation for willful violations are renumbered but otherwise preserved.
• Section 2 repeals any conflicting laws.

1. 2025-03-28Senate Read and Referred (Senado)
2. 2025-03-27Senate Hopper (Senado)

• Bo Hatchett (R, SD-050)Patrocinador principal
• Brian Strickland (R, SD-042)
• Blake Tillery (R, SD-019)
• Carden Summers (R, SD-013)
• Randy Robertson (R, SD-029)
• John Albers (R, SD-056)
• Drew Echols (R, SD-049)
• Nabilah Islam Parkes (D, SD-007)
• Derek Mallow (D, SD-002)

• insurance regulation
• insurance rates
• Commissioner of Insurance
• insurer penalties
• consumer protection