Bill > HB606

This bill amends Georgia's Fair Access to Insurance Requirements (FAIR) Plan to provide more flexibility in how insurers share risks within the state's property insurance assigned risk pool. Currently, insurers are required to participate in the FAIR Plan and share profits, losses, and expenses proportionally based on their market share for habitational and commercial risks. The bill allows the directors of the FAIR Plan underwriting association, with the Commissioner's approval, to redistribute risks among insurers in a more equitable manner. The legislative findings suggest that this approach may reduce individual insurer exposure, stabilize the FAIR Plan, and discourage insurers from selectively choosing only low-risk policies. Specifically, the bill adds a provision that allows for alternative risk distribution methods beyond the current market share-based approach, while maintaining that if an equitable redistribution is not implemented, risks will continue to be distributed according to the original market share formula. The changes will take effect on January 1, 2026, and are designed to provide more flexibility and potentially more stability to the state's property insurance market for high-risk properties that cannot obtain coverage through traditional private insurance channels.

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https://www.legis.ga.gov/legislation/70734