Georgia 2025-2026 Regular Session

Georgia House Bill HB606 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	25 LC 46 0938
2	2	House Bill 606
3	3	By: Representatives Lim of the 98
4	4	th
5	5	and Lupton of the 83
6	6	rd
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	To amend Chapter 33 of Title 33 of the Official Code of Georgia Annotated, relating to fair
11	11	1
12	12	access to insurance requirements, so as to authorize the directors of the underwriting2
13	13	association affiliated with the Fair Access to Insurance Requirements (FAIR) Plan to, subject3
14	14	to the Commissioner's approval, redistribute risks to insurers in the plan on a more equitable4
15	15	basis; to provide for a short title; to provide legislative findings; to provide for an effective5
16	16	date; to provide for related matters; to repeal conflicting laws; and for other purposes.6
17	17	BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
18	18	SECTION 1.8
19	19	This Act shall be known and may be cited as the "FAIR Plan Stabilization Act."9
20	20	SECTION 2.10
21	21	The General Assembly finds that:11
22	22	(1) Each insurer writing property insurance in this state is required to be a member of an12
23	23	assigned risk pool (the FAIR Plan) and its affiliated underwriting association;13
24	24	(2) The FAIR Plan is designed to provide property insurance to individuals and businesses14
25	25	that are unable to obtain coverage through the private market;15
26	26	H. B. 606
27	27	- 1 - 25 LC 46 0938
28	28	(3) The FAIR Plan is backed by insurers licensed in Georgia who currently share the
29	29	16
30	30	profits, losses, and expenses of the assigned risk pool proportionally to their market share;17
31	31	and18
32	32	(4) Allowing risk to be spread more broadly may reduce individual insurer exposure,19
33	33	further stabilize the FAIR Plan, and decrease the incentive for insurers to cherry-pick20
34	34	low-risk policies.21
35	35	SECTION 3.22
36	36	Chapter 33 of Title 33 of the Official Code of Georgia Annotated, relating to fair access to23
37	37	insurance requirements, is amended by revising Code Section 33-33-3, relating to24
38	38	requirement of participation in plan by property insurers, as follows:25
39	39	"33-33-3.26
40	40	(a) Each insurer authorized to write and writing property insurance in this state shall be27
41	41	required to become and remain a member of the plan and the underwriting association and28
42	42	to comply with the requirements of the plan and the underwriting association as a condition29
43	43	of its authority to transact property insurance business.30
44	44	(b) Each insurer shall participate in the writings, expenses, profits, and losses of the31
45	45	association in the following manner:32
46	46	(1) For habitational risks, the same proportion as its habitational premiums written bear33
47	47	to the aggregate habitational premiums written by all insurers in the program; and
48	48	34
49	49	(2) For commercial risks, the same proportion as its commercial premiums written bear35
50	50	to the aggregate commercial premiums written by all insurers in the program; and36
51	51	(3) Notwithstanding paragraphs (1) and (2) of this subsection, each insurer shall37
52	52	participate in the writings, expenses, profits, and losses of the association as provided for38
53	53	by equitable distribution in accordance with subsection (d) of Code Section 33-33-4."39
54	54	H. B. 606
55	55	- 2 - 25 LC 46 0938
56	56	SECTION 4.
57	57	40
58	58	Said chapter is further amended by revising Code Section 33-33-4, relating to powers of41
59	59	commissioner generally, as follows:42
60	60	"33-33-4.43
61	61	(a) The directors of the association shall submit to the Commissioner, for review, a44
62	62	proposed Fair Access to Insurance Requirements Plan and articles of association consistent45
63	63	with this chapter.46
64	64	(b) The Fair Access to Insurance Requirements Plan and articles of association shall be47
65	65	subject to approval by the Commissioner and shall take effect ten days after having been48
66	66	approved by the Commissioner. If the Commissioner disapproves all or any part of the49
67	67	proposed plan and articles, the directors of the association shall within 30 days submit for50
68	68	review an appropriately revised plan and articles; and, if the directors fail to do so, the51
69	69	Commissioner shall thereafter promulgate such plan and articles consistent with this52
70	70	chapter.53
71	71	(c) The directors of the association may, on their own initiative or at the request of the54
72	72	Commissioner, amend the plan and articles, subject to approval by the Commissioner.55
73	73	(d) The directors of the association may, subject to the approval of the Commissioner,
74	74	56
75	75	provide for the equitable redistribution of risks provided for in this chapter by means of57
76	76	assignments to members of the Fair Access to Insurance Requirements Plan. If such58
77	77	equitable redistribution is not implemented as provided in this subsection, all risks shall be59
78	78	distributed as described in paragraphs (1) and (2) of subsection (b) of Code Section60
79	79	33-33-3."61
80	80	SECTION 5.62
81	81	This Act shall become effective on January 1, 2026.63
82	82	SECTION 6.64
83	83	All laws and parts of laws in conflict with this Act are repealed.65
84	84	H. B. 606
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