Committee approves transparency bill requiring premium-tax breakdowns and dollar deductible amounts

The Senate Committee on Insurance and Labor unanimously passed House Bill 87 (LC521097S), a bill described by sponsors as a consumer-transparency measure that would require clearer premium-tax disclosure on insurance statements and convert percentage wind/hail deductibles into explicit dollar amounts.

The chair explained that the bill’s first part would require insurers to break out the state and county premium taxes on a policyholder’s statement so consumers can see what portion of their premium is tax revenue. The second part would require that wind and hail deductibles—commonly written as a percentage—be displayed in dollar amounts, a change sponsors said will show policyholders their potential out-of-pocket exposure more clearly.

The committee heard from Todd Edwards of the Association County Commissioners of Georgia, who told members that counties and cities collect insurance premium taxes at different rates and that counties must report annually how those premium tax proceeds are spent, often for police, fire and infrastructure. Edwards asked the committee to consider how counties and municipalities are treated in the bill’s reporting provisions.

Senator Kirkpatrick moved that the bill be passed; committee members seconded and the motion carried unanimously. Committee members said the change is intended to improve consumer awareness of tax amounts embedded in premiums and to avoid confusion when deductibles are expressed only as percentages.

The bill will proceed to the Senate floor for further consideration.