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Bill would require insurers exceeding profit projections to file rate decreases
Summary
House Bill 12 74, requested by Insurance Commissioner John King and introduced by Representative Reeves, would require insurers that exceed an anticipated profit by 5% for three straight years to file a rate decrease; the committee approved the bill and advanced it.
Representative Reeves presented House Bill 12 74 (LC529007), modeled on a Florida statute, to require insurers to file a rate decrease if they exceed an anticipated profit stated in a rate filing by 5% for three consecutive years.
"If the company exceeds the anticipated profit for 3 consecutive years by 5% or more, they are mandated to file a rate decrease," Reeves said. He cited the Florida experience, saying one company’s actions resulted in about $1 billion in rate reductions that benefited auto-insurance customers.
Committee members questioned how often companies exceed that threshold historically in Georgia; Reeves and Department staff said the state had seen recent market entries and multi-company rate cuts, and that the bill is intended to encourage conservative profit assumptions and quicker pass-through of savings to consumers.
A motion to "do pass" carried by voice vote and the sponsor was thanked for his work; the bill will move to Rules.
