"Georgia Insurance Premium Reduction Act"; enact
The proposed legislation seeks to establish a state-run online database where consumers can compare various insurance coverage options and rates. This new resource would enhance consumer awareness and facilitate more informed decision-making when selecting insurance policies. Moreover, it mandates that insurers disclose any requests for premium rate increases exceeding 5% and provide justification for such increases, thereby increasing accountability within the insurance industry.
Senate Bill 155, known as the 'Georgia Insurance Premium Reduction Act', aims to amend existing laws to enhance consumer transparency and regulate insurance premium rate increases. The bill prohibits insurers from basing rates on demographic factors such as race, creed, ethnic extraction, or census tracts. This change is intended to ensure fairness in the insurance sector, preventing discriminatory practices that could lead to inflated premiums for certain groups of people. The intent is to foster an equitable environment in insurance pricing across all demographics in Georgia.
Notably, the bill stipulates that insurers must submit detailed actuarial data to support any rate increase requests greater than 5%. For requests exceeding 10%, public hearings would be required. Furthermore, the bill addresses collusion among insurers by prohibiting them from manipulating litigation to justify premium increases. Critics may voice concerns about the implications for insurance companies and their operational flexibility, while supporters argue that the bill is essential for safeguarding consumer interests and promoting fair pricing.
Ultimately, SB155 reflects a legislative effort to enhance consumer protection in the insurance market in Georgia. By increasing transparency and regulating the way insurers can impose rate increases, the legislation aims to balance the operational framework of insurance providers with the rights and needs of consumers, potentially leading to a more just and equitable insurance landscape in the state.