Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Consumer Protections topic
No spam. Unsubscribe anytime.
Consumers press committee: Helene claims backlog, credit‑score impacts, spot insurance and limits of Georgia bad‑faith law
Summary
Residents, agents and plaintiffs’ counsel told the committee lingering Hurricane Helene claims, credit‑score impacts on premiums, on‑demand 'Hugo' policies and a restrictive uninsured‑motorist bad‑faith standard leave Georgians exposed; attorney Josh Carroll urged statutory fixes to bad‑faith and spot‑insurance rules.
Multiple public commenters told the House Insurance Rate Study Committee in Macon that affordability and consumer protection remain acute problems.
Independent agent Mike Kaplan described sharp cost increases for auto, homeowners and umbrella coverages, said many carriers have left the Georgia market and urged caution in legislative changes that could reduce market availability.
Attorney Josh Carroll outlined practical problems for insureds seeking uninsured/underinsured motorist coverage in Georgia. He explained that under OCGA 33‑7‑11(j) (the uninsured motorist bad‑faith statute) an insured who obtains a jury verdict against an uninsured driver still faces a separate, difficult two‑year bad‑faith action against the insurer. Carroll said Georgia’s statutory standard (the insurer’s conduct must be “frivolous and unfounded”) is among the strictest in the country and often leaves insureds with little practical remedy.
Carroll and others also warned about pay‑as‑you‑go and spot policies sold via apps (examples discussed under the brand name Hugo, underwritten in some cases by First Acceptance Insurance Company). They said consumers sometimes believe coverage follows a person rather than the vehicle and may drive uninsured; the department and committee were urged to consider enforcement or statutory changes.
Committee members and department staff discussed consumer complaint volumes, the department’s investigative resources, and practical fixes — including better dispute resolution for credit reporting errors, more aggressive enforcement of outstanding storm claims, and potential legislative language to address spot insurance and bad‑faith standards. The committee asked the department to provide updated counts of outstanding Helene claims before its December meeting.
