Bill would require insurers exceeding profit projections to file rate decreases

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.