Bill > HB1274

This bill, known as the "Auto Insurance Excess Profits Act," establishes a mechanism for the Department of Insurance to regulate profits made by insurers selling private passenger automobile insurance in Georgia. It requires these insurers to annually report specific financial data, including earned premiums, incurred losses, expenses, and policyholder dividends, for the three most recent accident years. The Commissioner of Insurance will then compare an insurer's actual underwriting profit (the profit from insurance operations, not investments) to their "anticipated underwriting profit" plus a 5% margin of earned premiums. If an insurer's profit exceeds this threshold, it is considered an "excess profit," and the Commissioner can order the insurer to refund these excess profits to policyholders. These refunds can be issued as either a direct cash payment or a credit towards future policy premiums, unless the insurer can prove that such a refund would make them financially unstable. The bill also defines key terms like "anticipated underwriting profit," "cash refund," "credit refund," and "excess profit," and outlines procedures for the Commissioner's order, notice, and opportunity for a hearing before any refund is mandated, with the Commissioner also empowered to create necessary rules and regulations for enforcement.

Business and Industry

https://www.legis.ga.gov/legislation/73115