Panel advances bill that would force rate decreases when insurers consistently overperform
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Summary
House Bill 1274 would require insurers to file rate decreases if their actual profits exceed the anticipated profit in rate filings by 5% or more for three consecutive years; the committee approved the measure after brief questioning about historical precedent.
Representative Matt Reeves introduced House Bill 12 74, saying it was requested by Insurance Commissioner John King and modeled on statutes used in other states to accelerate rate relief for consumers. "If the company exceeds the anticipated profit for 3 consecutive years by 5% or more, they are mandated to file a rate decrease," Reeves told the committee, citing other-state examples where regulators forced reductions after companies exceeded projections.
Representative Williamson asked whether Georgia insurers had historically exceeded profits by that margin for three years; Reeves acknowledged such runs have been rare but said the bill's purpose is to make insurers conservative in profit projections so customers receive savings sooner.
A motion of 'Do pass' was offered, seconded and adopted by voice vote; the committee approved the bill.