Committee approves larger fines for insurance violations

Mister Chairman presented House Bill 12 62, a Department of Insurance measure that would increase statutory caps on fines in four enforcement areas — mental-health parity enforcement, general fines, surprise-billing violations and prepaid legal service plans. The sponsor said the current caps have not kept pace with inflation: "The $2,000 cap has not been adjusted in more than 15 years, and the $5,000 cap has not been updated in over 30 years."

Committee members asked for technical details about how the measure would apply to prepaid legal-service plans. Bryce Rawson, director of legislative affairs for the Georgia Insurance Commissioner's office, told the committee the change aligns enumerations in the code section with updated penalty amounts and offered to follow up with specific examples. "I'm not sure if I have a specific example for you today, sir," Rawson said.

After brief discussion the committee moved and passed the bill by voice vote. The chair said the second bill is now in Rules.