| 1 | 1 | | 25 LC 52 0818 |
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| 2 | 2 | | House Bill 733 |
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| 3 | 3 | | By: Representatives Miller of the 62 |
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| 4 | 4 | | nd |
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| 5 | 5 | | , Tran of the 80 |
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| 6 | 6 | | th |
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| 7 | 7 | | , Holcomb of the 101 |
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| 8 | 8 | | st |
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| 9 | 9 | | , Smith of the |
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| 10 | 10 | | 18 |
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| 11 | 11 | | th |
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| 12 | 12 | | , Kelley of the 16 |
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| 13 | 13 | | th |
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| 14 | 14 | | , and others |
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| 15 | 15 | | A BILL TO BE ENTITLED |
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| 16 | 16 | | AN ACT |
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| 17 | 17 | | To amend Title 33 of the Official Code of Georgia Annotated, relating to insurance, so as to |
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| 18 | 18 | | 1 |
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| 19 | 19 | | increase transparency and accountability in the insurance industry and at the office of the2 |
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| 20 | 20 | | Commissioner of Insurance; to provide for an insurance consumer and policyholder advocate3 |
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| 21 | 21 | | within the office of the Commissioner of Insurance; to provide for definitions; to provide for4 |
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| 22 | 22 | | the duties of such advocate; to provide for such advocate to represent insurance consumers5 |
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| 23 | 23 | | and policyholders at certain proceedings; to provide for rules and regulations; to prohibit6 |
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| 24 | 24 | | rates from being unjustifiably increased; to revise standards for the making and use of rates7 |
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| 25 | 25 | | of insurance; to eliminate the file-and-use system for private passenger automobile insurance;8 |
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| 26 | 26 | | to revise the time the department has to review rate filings; to require insurers to submit9 |
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| 27 | 27 | | additional documentation when a proposed rate filing will increase rates; to provide for10 |
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| 28 | 28 | | additional review and procedures for a rate filing that increases a rate by more than ten11 |
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| 29 | 29 | | percent within any 12 month period; to provide for open records; to provide for the approval12 |
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| 30 | 30 | | of rate increases under certain conditions; to authorize such advocate to review and13 |
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| 31 | 31 | | investigate complaints; to provide for such advocate to request a hearing; to provide for14 |
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| 32 | 32 | | related matters; to provide for a short title; to provide for legislative purpose; to provide for15 |
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| 33 | 33 | | an effective date and applicability; to repeal conflicting laws; and for other purposes.16 |
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| 34 | 34 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:17 |
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| 35 | 35 | | H. B. 733 |
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| 36 | 36 | | - 1 - 25 LC 52 0818 |
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| 37 | 37 | | SECTION 1. |
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| 38 | 38 | | 18 |
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| 39 | 39 | | This Act shall be known and may be cited as the "Georgia Insurance Consumer and19 |
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| 40 | 40 | | Policyholder Advocacy Act."20 |
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| 41 | 41 | | SECTION 2.21 |
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| 42 | 42 | | The purpose of this Act is to protect insurance consumers and policyholders by ensuring22 |
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| 43 | 43 | | fairness and transparency in insurance practices, addressing unjustified rate increases,23 |
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| 44 | 44 | | enhancing industry oversight, and providing education and advocacy for insurance24 |
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| 45 | 45 | | consumers and policyholders.25 |
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| 46 | 46 | | SECTION 3.26 |
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| 47 | 47 | | Title 33 of the Official Code of Georgia Annotated, relating to insurance, is amended in27 |
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| 48 | 48 | | Chapter 2, relating to department and Commissioner, by revising Code Section 33-2-4, which28 |
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| 49 | 49 | | is reserved, as follows:29 |
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| 50 | 50 | | "33-2-4.30 |
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| 51 | 51 | | (a) As used in this Code section, the term: |
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| 52 | 52 | | 31 |
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| 53 | 53 | | (1) 'Insurance consumer' means any individual or person in this state that entered into a32 |
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| 54 | 54 | | contract for a product or service from an insurer or licensee under the jurisdiction of the33 |
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| 55 | 55 | | Commissioner.34 |
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| 56 | 56 | | (2) 'Insurance consumer and policyholder advocate' or 'advocate' means an individual35 |
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| 57 | 57 | | employed in the department to represent the interests of insurance consumers and36 |
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| 58 | 58 | | policyholders in insurance matters.37 |
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| 59 | 59 | | (3) 'Policyholder' means a person in this state who is or was an owner, insured, covered38 |
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| 60 | 60 | | person, beneficiary, or person designated as responsible for payment under an insurance39 |
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| 61 | 61 | | policy, certificate of insurance, or annuity contract provided by an insurer.40 |
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| 62 | 62 | | (b) There is established within the office of the Commissioner the position of insurance41 |
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| 63 | 63 | | consumer and policyholder advocate. The advocate shall:42 |
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| 64 | 64 | | H. B. 733 |
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| 65 | 65 | | - 2 - 25 LC 52 0818 |
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| 66 | 66 | | (1) Review insurer practices related to policy cancellations and nonrenewals for fairness43 |
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| 67 | 67 | | to insurance consumers and policyholders and investigate any policy cancellations or44 |
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| 68 | 68 | | nonrenewals at the request of an insurance consumer or policyholder;45 |
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| 69 | 69 | | (2) Participate in rate approval processes and advocate on behalf of insurance consumers46 |
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| 70 | 70 | | and policyholders in such processes and any subsequent hearings;47 |
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| 71 | 71 | | (3) Implement state-wide campaigns, conduct stakeholder meetings, publish materials,48 |
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| 72 | 72 | | and provide online tools to educate insurance consumers and policyholders on the risks49 |
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| 73 | 73 | | and benefits of different types of insurance, including but not limited to health, life,50 |
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| 74 | 74 | | automobile, property, and flood, to ensure insurance consumers and policyholders can51 |
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| 75 | 75 | | make informed decisions; and52 |
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| 76 | 76 | | (4) Perform such other functions necessary to advocate for insurance consumers and53 |
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| 77 | 77 | | policyholders.54 |
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| 78 | 78 | | (c) The advocate shall be entitled to appear, as a party or otherwise, on behalf of insurance55 |
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| 79 | 79 | | consumers and policyholders in any proceedings before the Commissioner, in56 |
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| 80 | 80 | | administrative proceedings related to violations of provisions in this title, and in judicial57 |
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| 81 | 81 | | proceedings appealing an act by the Commissioner.58 |
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| 82 | 82 | | (d) The Commissioner shall promulgate any rules and regulations necessary to implement59 |
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| 83 | 83 | | the provisions of this Code section. Reserved."60 |
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| 84 | 84 | | SECTION 4.61 |
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| 85 | 85 | | Said title is further amended in said chapter by adding a new subsection to Code Section62 |
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| 86 | 86 | | 33-2-17, relating to conduct of hearings by Commissioner generally and demands for63 |
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| 87 | 87 | | hearing, to read as follows:64 |
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| 88 | 88 | | "(e) The insurance consumer and policyholder advocate is authorized to request a hearing65 |
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| 89 | 89 | | and to participate in any hearing held pursuant to this Code section."66 |
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| 90 | 90 | | H. B. 733 |
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| 91 | 91 | | - 3 - 25 LC 52 0818 |
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| 92 | 92 | | SECTION 5. |
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| 93 | 93 | | 67 |
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| 94 | 94 | | Said title is further amended in said chapter by revising Code Section 33-2-26, relating to68 |
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| 95 | 95 | | persons entitled to appeal and procedure generally, as follows:69 |
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| 96 | 96 | | "33-2-26.70 |
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| 97 | 97 | | An appeal from the Commissioner shall be taken only from an order on hearing or with71 |
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| 98 | 98 | | respect to a matter as to which the Commissioner has refused or failed to grant or hold a72 |
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| 99 | 99 | | hearing after demand therefor under Code Section 33-2-17 or as to a matter as to which the73 |
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| 100 | 100 | | Commissioner has refused or failed to make his order on hearing as required by Code74 |
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| 101 | 101 | | Section 33-2-23. Any |
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| 102 | 102 | | The insurance consumer and policyholder advocate and any person75 |
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| 103 | 103 | | who was a party to the hearing or whose pecuniary interests are directly and immediately76 |
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| 104 | 104 | | affected by the refusal or failure to grant a hearing and who is aggrieved by the order,77 |
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| 105 | 105 | | refusal, or failure may appeal from the order on hearing or as to any such matter within 3078 |
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| 106 | 106 | | days after:79 |
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| 107 | 107 | | (1) The order on hearing has been mailed or delivered to the persons entitled to receive80 |
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| 108 | 108 | | the same;81 |
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| 109 | 109 | | (2) The Commissioner's order denying rehearing or reargument has been so mailed or82 |
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| 110 | 110 | | delivered;83 |
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| 111 | 111 | | (3) The Commissioner has refused or failed to make his order on hearing as required84 |
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| 112 | 112 | | under Code Section 33-2-23; or85 |
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| 113 | 113 | | (4) The Commissioner has refused or failed to grant or hold a hearing as required under86 |
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| 114 | 114 | | Code Section 33-2-17."87 |
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| 115 | 115 | | SECTION 6.88 |
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| 116 | 116 | | Said title is further amended in Chapter 9, relating to regulation of rates, underwriting rules,89 |
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| 117 | 117 | | and related organizations, by revising subsection (a) of Code Section 33-9-1, relating to90 |
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| 118 | 118 | | purpose and construction of chapter, as follows:91 |
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| 119 | 119 | | H. B. 733 |
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| 120 | 120 | | - 4 - 25 LC 52 0818 |
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| 121 | 121 | | "(a) The purpose of this chapter is to promote the public welfare by regulating insurance |
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| 122 | 122 | | 92 |
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| 123 | 123 | | rates as provided in this chapter to the end that they shall not be excessive, inadequate, or93 |
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| 124 | 124 | | unfairly discriminatory to insurance consumers or policyholders, shall not be unjustifiably |
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| 125 | 125 | | 94 |
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| 126 | 126 | | increased, and shall be subject to an open and transparent review process; to authorize the95 |
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| 127 | 127 | | existence and operation of qualified rating organizations and advisory organizations and96 |
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| 128 | 128 | | require that specified rating services of such rating organizations be generally available to97 |
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| 129 | 129 | | all admitted insurers; and to authorize cooperation between insurers in rate making and98 |
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| 130 | 130 | | other related matters."99 |
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| 131 | 131 | | SECTION 7.100 |
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| 132 | 132 | | Said title is further amended in said chapter by revising Code Section 33-9-2, relating to101 |
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| 133 | 133 | | definitions, as follows:102 |
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| 134 | 134 | | "33-9-2.103 |
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| 135 | 135 | | As used in this chapter, the term:104 |
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| 136 | 136 | | (1) 'Advisory organization' means every person other than an admitted insurer, whether105 |
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| 137 | 137 | | located within or outside this state, who prepares policy forms or makes underwriting106 |
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| 138 | 138 | | rules incident to but not including the making of rates, rating plans, or rating systems, or107 |
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| 139 | 139 | | who collects and furnishes to admitted insurers or rating organizations loss or expense108 |
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| 140 | 140 | | statistics or other statistical information and data and acts in an advisory, as distinguished109 |
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| 141 | 141 | | from a rate-making, capacity. No duly authorized attorney at law acting in the usual110 |
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| 142 | 142 | | course of his profession shall be deemed to be an advisory organization.111 |
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| 143 | 143 | | (2) 'Insurance consumer' shall have the same meaning as set forth in Code112 |
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| 144 | 144 | | Section 33-2-4.113 |
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| 145 | 145 | | (3) 'Insurance consumer and policyholder advocate' or 'advocate' shall have the same114 |
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| 146 | 146 | | meaning as set forth in Code Section 33-2-4.115 |
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| 147 | 147 | | (2)(4) 'Member' means an insurer who participates in or is entitled to participate in the116 |
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| 148 | 148 | | management of a rating, advisory, or other organization.117 |
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| 149 | 149 | | H. B. 733 |
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| 150 | 150 | | - 5 - 25 LC 52 0818 |
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| 151 | 151 | | (5) 'Policyholder' shall have the same meaning as set forth in Code Section 33-2-4.118 |
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| 152 | 152 | | (3)(6) 'Rating organization' means every person other than an admitted insurer, whether119 |
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| 153 | 153 | | located within or outside this state, who has as his object or purpose the making of rates,120 |
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| 154 | 154 | | rating plans, or rating systems. Two or more admitted insurers who act in concert for the121 |
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| 155 | 155 | | purpose of making rates, rating plans, or rating systems and who do not operate within122 |
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| 156 | 156 | | the specific authorizations contained in Code Sections 33-9-6, 33-9-7, 33-9-11, 33-9-20,123 |
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| 157 | 157 | | and 33-9-22 shall be deemed to be a rating organization. No single insurer shall be124 |
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| 158 | 158 | | deemed to be a rating organization.125 |
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| 159 | 159 | | (4)(7) 'Subscriber' means an insurer which is furnished at its request with rates and rating126 |
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| 160 | 160 | | manuals by a rating organization of which it is not a member, or with advisory services127 |
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| 161 | 161 | | by an advisory organization of which it is not a member."128 |
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| 162 | 162 | | SECTION 8.129 |
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| 163 | 163 | | Said title is further amended in said chapter by revising Code Section 33-9-4, relating to130 |
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| 164 | 164 | | standards applicable to making and use of rates, as follows:131 |
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| 165 | 165 | | "33-9-4.132 |
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| 166 | 166 | | The following standards shall apply to the making and use of rates pertaining to all classes133 |
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| 167 | 167 | | of insurance to which this chapter is applicable:134 |
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| 168 | 168 | | (1) Rates shall not be excessive, or inadequate, as defined in this Code section, nor shall135 |
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| 169 | 169 | | they be or unfairly discriminatory to insurance consumers or policyholders;136 |
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| 170 | 170 | | (2) No rate shall be held to be excessive unless such rate is unreasonably high for the137 |
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| 171 | 171 | | insurance provided and a reasonable degree of competition does not exist in the area with138 |
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| 172 | 172 | | respect to the classification to which such rate is applicable; provided, however, with139 |
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| 173 | 173 | | respect to rate filings involving an increase in rates, no rate for personal private passenger140 |
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| 174 | 174 | | motor vehicle insurance shall be held to be excessive unless such rate is unreasonably141 |
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| 175 | 175 | | high for the insurance provided and a reasonable degree of competition does not exist;142 |
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| 176 | 176 | | H. B. 733 |
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| 177 | 177 | | - 6 - 25 LC 52 0818 |
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| 178 | 178 | | (3) No rate shall be held inadequate unless it is unreasonably low for the insurance |
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| 179 | 179 | | 143 |
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| 180 | 180 | | provided and continued use of it would endanger solvency of the insurer, or unless the144 |
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| 181 | 181 | | use of such rate by the insurer using such rate has, or will, if continued, tend to destroy145 |
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| 182 | 182 | | competition or create a monopoly;146 |
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| 183 | 183 | | (3.1) No rate shall be unjustifiably increased, and any rate filing that results in an overall |
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| 184 | 184 | | 147 |
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| 185 | 185 | | rate increase of 10 percent or more within a 12 month period shall be subject to an148 |
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| 186 | 186 | | examination and an open and transparent review process as set forth in this chapter;149 |
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| 187 | 187 | | (4) Consideration shall be given to the extent applicable to past and prospective loss150 |
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| 188 | 188 | | experience within and outside this state, to conflagration and catastrophe hazards, to a151 |
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| 189 | 189 | | reasonable margin for underwriting profit and contingencies, to past and prospective152 |
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| 190 | 190 | | expenses both country wide and those specially applicable to this state, to the insurer's153 |
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| 191 | 191 | | average yield from investment income, and to all other factors, including judgment154 |
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| 192 | 192 | | factors, deemed relevant within and outside this state; and, in the case of fire insurance155 |
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| 193 | 193 | | rates, consideration may be given to the experience of the fire insurance business during156 |
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| 194 | 194 | | the most recent five-year period;157 |
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| 195 | 195 | | (5) Consideration may also be given, in the making and use of rates, to dividends,158 |
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| 196 | 196 | | savings, or unabsorbed premium deposits allowed or returned by insurers to their159 |
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| 197 | 197 | | policyholders, members, or subscribers;160 |
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| 198 | 198 | | (6) The systems of expense provisions included in the rates for use by any insurer or161 |
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| 199 | 199 | | group of insurers may differ from those of other insurers or groups of insurers to reflect162 |
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| 200 | 200 | | the operating methods of any such insurer or group with respect to any kind of insurance163 |
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| 201 | 201 | | or with respect to any subdivision or combination thereof;164 |
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| 202 | 202 | | (7) Risks may be grouped by classifications for the establishment of rates and minimum165 |
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| 203 | 203 | | premiums. Classification rates may be modified to produce rates for individual risks in166 |
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| 204 | 204 | | accordance with rating plans which establish standards for measuring variations in167 |
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| 205 | 205 | | hazards or expense provisions, or both. Such standards may measure any difference168 |
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| 206 | 206 | | among risks that have a probable effect upon losses or expenses. Classifications or169 |
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| 207 | 207 | | H. B. 733 |
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| 208 | 208 | | - 7 - 25 LC 52 0818 |
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| 209 | 209 | | modifications of classifications of risks may be established based upon size, expense, |
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| 210 | 210 | | 170 |
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| 211 | 211 | | management, individual experience, location or dispersion of hazard, or any other171 |
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| 212 | 212 | | reasonable considerations. Such classifications and modifications shall apply to all risks172 |
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| 213 | 213 | | under the same or substantially the same circumstances or conditions; provided, however,173 |
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| 214 | 214 | | the Commissioner shall establish the maximum amount of any such modification;174 |
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| 215 | 215 | | (8) Nothing contained in this Code section or elsewhere in this chapter shall be construed175 |
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| 216 | 216 | | to repeal or modify Chapter 6 of this title, relating to unfair trade practices, and any rate,176 |
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| 217 | 217 | | rating classification, rating plan or schedule, or variation thereof established in violation177 |
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| 218 | 218 | | of Chapter 6 of this title shall, in addition to the consequences stated in Chapter 6 of this178 |
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| 219 | 219 | | title or elsewhere, be deemed violative of |
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| 220 | 220 | | to violate his Code section;179 |
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| 221 | 221 | | (9) No insurer shall base any standard or rating plan on vehicle insurance, in whole or180 |
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| 222 | 222 | | in part, directly or indirectly, upon race, creed, or ethnic extraction; and181 |
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| 223 | 223 | | (10) No insurer shall base any standard or rating plan on vehicle insurance, in whole or182 |
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| 224 | 224 | | in part, directly or indirectly, upon any physical disability of an insured unless the183 |
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| 225 | 225 | | disability directly impairs the ability of the insured to drive a motor vehicle."184 |
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| 226 | 226 | | SECTION 9.185 |
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| 227 | 227 | | Said title is further amended in said chapter by revising Code Section 33-9-21, relating to186 |
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| 228 | 228 | | maintenance and filing rates, rating plans, rating systems, or underwriting rules and187 |
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| 229 | 229 | | examination of claim reserve practices by the Commissioner, as follows:188 |
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| 230 | 230 | | "33-9-21.189 |
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| 231 | 231 | | (a) Every insurer shall maintain with the Commissioner copies of the rates, rating plans,190 |
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| 232 | 232 | | rating systems, underwriting rules, and policy or bond forms used by it. The maintenance191 |
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| 233 | 233 | | of rates, rating plans, rating systems, underwriting rules, and policy or bond forms with the192 |
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| 234 | 234 | | Commissioner by a licensed rating organization of which an insurer is a member or193 |
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| 235 | 235 | | subscriber will be sufficient compliance with this Code section for any insurer maintaining194 |
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| 236 | 236 | | membership or subscriberships in such organization, to the extent that the insurer uses the195 |
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| 237 | 237 | | H. B. 733 |
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| 238 | 238 | | - 8 - 25 LC 52 0818 |
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| 239 | 239 | | rates, rating plans, rating systems, underwriting rules, and policy or bond forms of such |
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| 240 | 240 | | 196 |
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| 241 | 241 | | organization; provided, however, that the Commissioner, when he or she deems it197 |
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| 242 | 242 | | necessary, without compliance with the rule-making procedures of this title or Chapter 13198 |
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| 243 | 243 | | of Title 50, the 'Georgia Administrative Procedure Act':199 |
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| 244 | 244 | | (1) May require any domestic, foreign, and alien insurer to file the required rates, rating200 |
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| 245 | 245 | | plans, rating systems, underwriting rules, and policy or bond forms used independent of201 |
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| 246 | 246 | | any filing made on its behalf or as a member of a licensed rating organization, as the202 |
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| 247 | 247 | | Commissioner shall deem to be necessary to ensure compliance with the standards of this203 |
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| 248 | 248 | | chapter and Code Section 34-9-130 and for the best interests of the citizens of this state;204 |
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| 249 | 249 | | (2) Shall require each domestic, foreign, and alien insurer, writing or authorized to write205 |
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| 250 | 250 | | workers' compensation insurance in this state, to file such insurer's own individual rate206 |
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| 251 | 251 | | filing for rates to be charged for workers' compensation insurance coverage written in this207 |
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| 252 | 252 | | state. Such rates shall be developed and established after consultation with the State |
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| 253 | 253 | | 208 |
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| 254 | 254 | | Board of Workers' Compensation based upon each individual insurer's experience in the209 |
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| 255 | 255 | | State of Georgia to the extent actuarially credible. The experience filed shall include the210 |
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| 256 | 256 | | loss ratios, reserves, reserve development information, expenses, including commissions211 |
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| 257 | 257 | | paid and dividends paid, investment income, pure premium data adjusted for loss212 |
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| 258 | 258 | | development and loss trending, profits, and all other data and information used by that213 |
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| 259 | 259 | | insurer in formulating its workers' compensation rates which are used in this state and any214 |
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| 260 | 260 | | other information or data required by the Commissioner. In establishing and maintaining215 |
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| 261 | 261 | | loss reserves, no workers' compensation insurer shall be allowed to maintain any excess216 |
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| 262 | 262 | | loss reserve for any claim or potential claim for more than 90 days after the amount of217 |
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| 263 | 263 | | liability for such claim or potential claim has been established, whether by final218 |
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| 264 | 264 | | judgment, by settlement agreement, or otherwise. This limitation on the maintenance of219 |
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| 265 | 265 | | loss reserves shall be enforced through this Code section, as well as through Code220 |
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| 266 | 266 | | Section 33-9-23, relating to examination of admitted insurers, and any other appropriate221 |
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| 267 | 267 | | enforcement procedures. The Commissioner is authorized to accept such rate222 |
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| 268 | 268 | | H. B. 733 |
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| 269 | 269 | | - 9 - 25 LC 52 0818 |
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| 270 | 270 | | classifications as are reasonable and necessary for compliance with this chapter. A rate |
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| 271 | 271 | | 223 |
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| 272 | 272 | | filing required by this paragraph shall be updated by the insurer at least once every two224 |
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| 273 | 273 | | years; and225 |
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| 274 | 274 | | (3) As used in paragraph (2) of this subsection, the term 'excess loss reserve' means any226 |
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| 275 | 275 | | reserve amount in excess of the reserve required by law.227 |
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| 276 | 276 | | (b) Any domestic, foreign, or alien insurer that is authorized to write insurance in this state228 |
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| 277 | 277 | | must |
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| 278 | 278 | | shall file with the Commissioner any rate, rating plan, rating system, or underwriting229 |
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| 279 | 279 | | rule for all personal private passenger motor vehicle insurance:230 |
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| 280 | 280 | | (1) For private passenger motor vehicle insurance providing only the mandatory231 |
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| 281 | 281 | | minimum limits required by Code Section 33-34-4 and subsection (a) of Code232 |
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| 282 | 282 | | Section 40-9-37, and no such rate, rating plan, rating system, or underwriting rule shall233 |
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| 283 | 283 | | become effective, nor may any premium be collected by any insurer thereunder, unless234 |
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| 284 | 284 | | the filing has been received by the Commissioner in his or her office and such filing has235 |
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| 285 | 285 | | been approved by the Commissioner or a period of 45 60 days has elapsed from the date236 |
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| 286 | 286 | | such filing was received by the Commissioner during which time such filing has not been237 |
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| 287 | 287 | | disapproved by the Commissioner. The Commissioner shall be authorized to extend such238 |
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| 288 | 288 | | 45 60 day period by no more than 55 40 days at his or her discretion. If a filing is239 |
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| 289 | 289 | | disapproved, notice of such disapproval order shall be given within 100 days of receipt240 |
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| 290 | 290 | | of filing by the Commissioner, specifying in what respects such filing fails to meet the241 |
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| 291 | 291 | | requirements of this chapter. The filer shall be given a hearing upon written request made242 |
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| 292 | 292 | | within 30 days after the issuance of the disapproval order, and such hearing shall243 |
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| 293 | 293 | | commence within 30 days after such request unless postponed by mutual consent. Such244 |
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| 294 | 294 | | hearing, once commenced, may be postponed or recessed by the Commissioner only for245 |
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| 295 | 295 | | weekends, holidays, or after normal working hours or at any time by mutual consent of246 |
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| 296 | 296 | | all parties to the hearing. The Commissioner may also, at his or her discretion, recess any247 |
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| 297 | 297 | | hearing for not more than two recess periods of up to 15 consecutive days each. In248 |
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| 298 | 298 | | connection with any hearing or judicial review with respect to the approval or disapproval249 |
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| 299 | 299 | | H. B. 733 |
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| 300 | 300 | | - 10 - 25 LC 52 0818 |
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| 301 | 301 | | of such rates, the burden of persuasion shall fall upon the affected insurer or insurers to |
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| 302 | 302 | | 250 |
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| 303 | 303 | | establish that the challenged rates are adequate, not excessive, and |
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| 304 | 304 | | not unfairly251 |
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| 305 | 305 | | discriminatory, and not unjustifiably increased. After such a hearing, the Commissioner252 |
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| 306 | 306 | | must shall affirm, modify, or reverse his or her previous action within the time period253 |
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| 307 | 307 | | provided in subsection (a) of Code Section 33-2-23 relative to orders of the254 |
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| 308 | 308 | | Commissioner. The requirement of approval or disapproval of a rate filing by the255 |
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| 309 | 309 | | Commissioner under this subsection shall not prohibit actions by the Commissioner256 |
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| 310 | 310 | | regarding compliance of such rate filing with the requirements of Code Section 33-9-4257 |
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| 311 | 311 | | brought after such approval or disapproval.258 |
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| 312 | 312 | | (2) For personal private passenger motor vehicle insurance other than that described in259 |
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| 313 | 313 | | paragraph (1) of this subsection, such rate, rating plan, rating system, or underwriting rule260 |
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| 314 | 314 | | for all such personal private passenger motor vehicle insurance shall be effective 60 days261 |
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| 315 | 315 | | after such filing and shall be implemented without approval of the Commissioner, unless262 |
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| 316 | 316 | | an earlier effective date is authorized by the Commissioner or a later effective date is263 |
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| 317 | 317 | | specified by the insurer. This paragraph shall apply to the entire personal private264 |
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| 318 | 318 | | passenger motor vehicle insurance policy with limits above the mandatory minimum265 |
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| 319 | 319 | | required by Code Section 33-34-4 and subsection (a) of Code Section 40-9-37 and shall266 |
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| 320 | 320 | | apply to the entire personal private passenger motor vehicle policy with minimum limits267 |
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| 321 | 321 | | if such policy has any additional nonmandatory coverage or coverages.268 |
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| 322 | 322 | | (3) Notwithstanding the provisions of paragraphs (1) and (2) of this subsection, an269 |
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| 323 | 323 | | insurer may, but shall not be required to, file its rate, rating plan, rating system, or270 |
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| 324 | 324 | | underwriting rule for all such personal private passenger motor vehicle insurance271 |
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| 325 | 325 | | provided for in paragraphs (1) and (2) of this subsection under the filing process of272 |
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| 326 | 326 | | paragraph (1) of this subsection.273 |
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| 327 | 327 | | (c) When a rate filing of an insurer required under paragraph (1) of subsection (b) of this274 |
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| 328 | 328 | | Code section is not accompanied by the information upon which the insurer supports the275 |
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| 329 | 329 | | filing and the Commissioner does not have sufficient information to determine whether the276 |
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| 330 | 330 | | H. B. 733 |
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| 331 | 331 | | - 11 - 25 LC 52 0818 |
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| 332 | 332 | | filing meets the requirements of this chapter, then the Commissioner shall request in |
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| 333 | 333 | | 277 |
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| 334 | 334 | | writing, within 20 days of the date he or she receives the filing, the specifics of such278 |
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| 335 | 335 | | additional information as he or she requires, and the insurer shall be required to furnish279 |
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| 336 | 336 | | such information, and in such event the 45 |
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| 337 | 337 | | 60 day period provided for in paragraph (1) of280 |
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| 338 | 338 | | subsection (b) of this Code section shall commence as of the date such information is281 |
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| 339 | 339 | | furnished.282 |
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| 340 | 340 | | (d) Any domestic, foreign, or alien insurer that is authorized to write insurance in this state283 |
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| 341 | 341 | | must shall file with the Commissioner any rate, rating plan, rating system, or underwriting284 |
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| 342 | 342 | | rule at least 45 60 days prior to any indicated effective date for all insurance other than285 |
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| 343 | 343 | | personal private passenger motor vehicle insurance. No rate, rating plan, rating system, or286 |
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| 344 | 344 | | underwriting rule required to be filed under this subsection will become effective, nor may287 |
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| 345 | 345 | | any premium be collected by any insurer thereunder, unless the filing has been received by288 |
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| 346 | 346 | | the Commissioner in his office not less than 45 60 days prior to its effective date.289 |
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| 347 | 347 | | (e) When a rate filing of an insurer required under subsection (d) of this Code section290 |
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| 348 | 348 | | results in any increase that impacts insurance consumers or policyholders, such insurer291 |
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| 349 | 349 | | shall submit to the Commissioner a detailed actuarial report demonstrating the necessity292 |
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| 350 | 350 | | of the proposed rate increase based on claims trends, risk factors, and financial solvency;293 |
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| 351 | 351 | | a breakdown of administrative expenses, claim costs, and anticipated profit margins; a294 |
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| 352 | 352 | | statement on how the proposed rate increase shall affect policyholders, including families,295 |
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| 353 | 353 | | small businesses, and commercial enterprises in this state; historical past rate changes and296 |
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| 354 | 354 | | corresponding justifications for the preceding five years; and any other documents deemed297 |
|---|
| 355 | 355 | | necessary by the advocate or the Commissioner. When a rate filing of an insurer required298 |
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| 356 | 356 | | under subsection (d) of this Code section results in any overall rate increase of 10 percent299 |
|---|
| 357 | 357 | | or more within any 12 month period, the Commissioner shall order an examination of that300 |
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| 358 | 358 | | insurer to determine the accuracy of the claim reserves, the applicability of the claim301 |
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| 359 | 359 | | reserve practices for the loss data used in support of such filing, and any other component302 |
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| 360 | 360 | | of the rate filing; provided, however, that in the event the overall increase is less than 25303 |
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| 361 | 361 | | H. B. 733 |
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| 362 | 362 | | - 12 - 25 LC 52 0818 |
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| 363 | 363 | | percent within any 12 month period and the Commissioner affirmatively determines that304 |
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| 364 | 364 | | he or she has sufficient information to evaluate such rate increase and that the cost thereof305 |
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| 365 | 365 | | would not be justified, he or she may waive all or part of such examination. In all other306 |
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| 366 | 366 | | rate filings required under subsection (d) of this Code section, the Commissioner may order307 |
|---|
| 367 | 367 | | an examination of that insurer as provided in this subsection. Such examination shall be308 |
|---|
| 368 | 368 | | conducted in accordance with the provisions of Chapter 2 of this title. Upon notification309 |
|---|
| 369 | 369 | | by the Commissioner of his or her intent to conduct such examination, the insurer shall be310 |
|---|
| 370 | 370 | | prohibited from placing the rates so filed in effect until such examination has been311 |
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| 371 | 371 | | reviewed and certified by the Commissioner as being complete. Such examination, if312 |
|---|
| 372 | 372 | | conducted by the Commissioner, shall be reviewed and certified within 90 days of the date313 |
|---|
| 373 | 373 | | such rate, rating plan, rating system, or underwriting rule is filed; provided, however, that314 |
|---|
| 374 | 374 | | if the Commissioner makes an affirmative finding that the examination may not be315 |
|---|
| 375 | 375 | | completed within the 90 day period, he or she may extend such time for one additional 60316 |
|---|
| 376 | 376 | | day period completed and reviewed by the advocate and the Commissioner has approved317 |
|---|
| 377 | 377 | | or disapproved the rate filing. Any examination required under this Code section shall be318 |
|---|
| 378 | 378 | | conducted in accordance with Chapter 2 of this title.319 |
|---|
| 379 | 379 | | (f) Notwithstanding the provisions of subsection (d) of this Code section, in the event the320 |
|---|
| 380 | 380 | | filing of any rate, rating plan, rating system, or underwriting rule under subsection (d) of321 |
|---|
| 381 | 381 | | this Code section is not necessary, in the judgment of the Commissioner, to accomplish the322 |
|---|
| 382 | 382 | | purposes of this chapter as set forth in Code Section 33-9-1, then the Commissioner may323 |
|---|
| 383 | 383 | | exempt all domestic, foreign, and alien insurers from being required to file such rate, rating324 |
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| 384 | 384 | | plan, rating system, or underwriting rule.325 |
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| 385 | 385 | | (g) Filings required pursuant to this Code section shall be accompanied by a fee or fees as326 |
|---|
| 386 | 386 | | provided in Code Section 33-8-1.327 |
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| 387 | 387 | | (h) All filings related to rate increases shall be made available on the office's public328 |
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| 388 | 388 | | website within ten days of submission, as provided under Article 4 of Chapter 18 of329 |
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| 389 | 389 | | Title 50."330 |
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| 390 | 390 | | H. B. 733 |
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| 391 | 391 | | - 13 - 25 LC 52 0818 |
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| 392 | 392 | | SECTION 10. |
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| 393 | 393 | | 331 |
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| 394 | 394 | | Said title is further amended in said chapter by revising Code Section 33-9-21.2, relating to332 |
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| 395 | 395 | | petition for hearing by aggrieved insurer, as follows:333 |
|---|
| 396 | 396 | | "33-9-21.2.334 |
|---|
| 397 | 397 | | (a) The Commissioner shall only approve a proposed rate, rating plan, rating system, or |
|---|
| 398 | 398 | | 335 |
|---|
| 399 | 399 | | underwriting rule that results in an increase if such increase is:336 |
|---|
| 400 | 400 | | (1) Supported by clear and compelling data;337 |
|---|
| 401 | 401 | | (2) Necessary to ensure the insurer's financial stability; and338 |
|---|
| 402 | 402 | | (3) Not excessive, inadequate, or unfairly discriminatory to insurance consumers or339 |
|---|
| 403 | 403 | | policyholders.340 |
|---|
| 404 | 404 | | (b) The Commissioner shall disapprove any proposed rate, rating plan, rating system, or341 |
|---|
| 405 | 405 | | underwriting rule that results in an increase that fails to comply with the requirements of342 |
|---|
| 406 | 406 | | this chapter.343 |
|---|
| 407 | 407 | | (c) Any insurer aggrieved by the Commissioner's disapproval of any rate filing may344 |
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| 408 | 408 | | petition the Commissioner for a hearing within ten days of the notification of such345 |
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| 409 | 409 | | disapproval, unless otherwise specifically provided by law. A hearing conducted pursuant346 |
|---|
| 410 | 410 | | to this Code section shall be conducted in accordance with the provisions of Chapter 2 of347 |
|---|
| 411 | 411 | | this title. The insurance consumer and policyholder advocate is authorized to participate348 |
|---|
| 412 | 412 | | in such hearing and in any appeal therefrom."349 |
|---|
| 413 | 413 | | SECTION 11.350 |
|---|
| 414 | 414 | | Said title is further amended in said chapter by revising Code Section 33-9-26, relating to351 |
|---|
| 415 | 415 | | review of rate, rating plan, rating system, or underwriting rule by insurer or rating352 |
|---|
| 416 | 416 | | organization, as follows:353 |
|---|
| 417 | 417 | | "33-9-26.354 |
|---|
| 418 | 418 | | (a) Any person aggrieved by any rate charged, rating plan, rating system, or underwriting355 |
|---|
| 419 | 419 | | rule followed or adopted by an insurer or rating organization may request the insurer or356 |
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| 420 | 420 | | H. B. 733 |
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| 421 | 421 | | - 14 - 25 LC 52 0818 |
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| 422 | 422 | | rating organization to review the manner in which the rate, plan, system, or rule has been |
|---|
| 423 | 423 | | 357 |
|---|
| 424 | 424 | | applied with respect to insurance afforded him. The request may be made by his358 |
|---|
| 425 | 425 | | authorized representative and shall be written. If the request is not granted within 30 days359 |
|---|
| 426 | 426 | | after it is made, the requestor may treat it as rejected.360 |
|---|
| 427 | 427 | | (b) |
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| 428 | 428 | | Any person aggrieved by any rate charged, rating plan, rating system, or underwriting361 |
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| 429 | 429 | | rule followed or adopted by an insurer or rating organization or the action of an insurer or362 |
|---|
| 430 | 430 | | rating organization in refusing the review requested or in failing or refusing to grant all or363 |
|---|
| 431 | 431 | | part of the relief requested may file a written complaint and request for hearing with the364 |
|---|
| 432 | 432 | | Commissioner, specifying the grounds relied upon.365 |
|---|
| 433 | 433 | | (c) The insurance consumer and policyholder advocate shall review and investigate any366 |
|---|
| 434 | 434 | | written complaint as provided for in subsection (b) of this Code section and, on his or her367 |
|---|
| 435 | 435 | | own initiative, may review and investigate any rate, rating plan, rating system, or368 |
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| 436 | 436 | | underwriting rule proposed, followed, or adopted by an insurer or rating organization. If369 |
|---|
| 437 | 437 | | the Commissioner has information concerning a similar complaint, he may deny the370 |
|---|
| 438 | 438 | | hearing. If he believes that probable cause for the complaint does not exist or that the371 |
|---|
| 439 | 439 | | complaint is not made in good faith, he shall deny the hearing. Otherwise, and if he372 |
|---|
| 440 | 440 | | (d) If the advocate finds that the complaint charges a violation of this chapter and that the373 |
|---|
| 441 | 441 | | complainant would be aggrieved if the violation is proven, he or if the advocate finds a374 |
|---|
| 442 | 442 | | violation of this chapter based on his or her investigation, the advocate shall request a375 |
|---|
| 443 | 443 | | hearing before the Commissioner and such complaint shall proceed as provided in Code376 |
|---|
| 444 | 444 | | Section 33-9-27."377 |
|---|
| 445 | 445 | | SECTION 12.378 |
|---|
| 446 | 446 | | Said title is further amended in said chapter by revising Code Section 33-9-28, relating to379 |
|---|
| 447 | 447 | | conduct of hearing by Commissioner upon failure to correct noncompliance, notice of380 |
|---|
| 448 | 448 | | hearing, and matters considered at hearing, as follows:381 |
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| 449 | 449 | | H. B. 733 |
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| 450 | 450 | | - 15 - 25 LC 52 0818 |
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| 451 | 451 | | "33-9-28. |
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| 452 | 452 | | 382 |
|---|
| 453 | 453 | | If the Commissioner has good cause to believe the noncompliance to be willful, or, |
|---|
| 454 | 454 | | if383 |
|---|
| 455 | 455 | | within the period prescribed by the Commissioner in the notice required by Code384 |
|---|
| 456 | 456 | | Section 33-9-27, the insurer, organization, group, or association does not make the changes385 |
|---|
| 457 | 457 | | necessary to correct the noncompliance specified by the Commissioner or establish to the386 |
|---|
| 458 | 458 | | satisfaction of the Commissioner that the specified noncompliance does not exist, then the387 |
|---|
| 459 | 459 | | Commissioner may hold a public hearing in connection with the noncompliance, provided388 |
|---|
| 460 | 460 | | that within a reasonable period of time, which shall be not less than ten days before the date389 |
|---|
| 461 | 461 | | of the hearing, he shall mail written notice specifying the matters to be considered at the390 |
|---|
| 462 | 462 | | hearing to the insurer, organization, group, or association. If no notice has been given as391 |
|---|
| 463 | 463 | | provided in Code Section 33-9-27, the notice provided for in this Code section shall state392 |
|---|
| 464 | 464 | | to the extent practicable in what manner such noncompliance is alleged to exist. The393 |
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| 465 | 465 | | hearing shall not include any additional subjects not specified in the notices required by394 |
|---|
| 466 | 466 | | Code Section 33-9-27 or this Code section. The insurance consumer and policyholder395 |
|---|
| 467 | 467 | | advocate shall represent the interests of insurance consumers and policyholders before the396 |
|---|
| 468 | 468 | | Commissioner."397 |
|---|
| 469 | 469 | | SECTION 13.398 |
|---|
| 470 | 470 | | This Act shall become effective on July 1, 2025, and shall apply to all policies issued,399 |
|---|
| 471 | 471 | | delivered, issued for delivery, or renewed in this state on or after such date.400 |
|---|
| 472 | 472 | | SECTION 14.401 |
|---|
| 473 | 473 | | All laws and parts of laws in conflict with this Act are repealed.402 |
|---|
| 474 | 474 | | H. B. 733 |
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| 475 | 475 | | - 16 - |
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