Insurance; prohibit insurer from canceling or refusing to renew any property or casualty policy; provisions
The enactment of HB 1011 will introduce significant changes to how insurance companies operate in Georgia. It seeks to enhance the rights of consumers by ensuring that their inquiries or unfulfilled claims do not jeopardize their coverage. The law is set to take effect on July 1, 2023, and will apply to all property and casualty policies issued, delivered, or renewed after this date. By curbing certain practices of insurers, this bill aims to ensure that consumers can seek help without fear of losing their insurance coverage.
House Bill 1011 aims to amend existing provisions of the Official Code of Georgia regarding insurance practices. Specifically, this legislation prohibits insurers from canceling, modifying, refusing to issue, or refusing to renew any property or casualty insurance policy solely due to an inquiry or a claim submission that does not result in payment. This measure is intended to protect consumers from potential discrimination or retaliation by insurance companies when they seek information or file claims, fostering a fairer insurance environment for policyholders.
While the bill has garnered support for its consumer-friendly stance, there could be concerns regarding its implications for insurance companies. Opponents may argue that it could lead to increased claims as consumers feel more empowered to inquire about their policies or file claims, which may in turn affect the overall risk assessment carried out by insurers. The balance between protecting consumers and allowing insurers to manage risk effectively could become a central point of discussion in future legislative sessions regarding this bill.