Georgia subcommittee advances HB 1344 to tighten fraud rules, speed storm claims and boost uninsured-motorist enforcement

A Georgia Senate subcommittee voted to advance House Bill 1344 (LC 46 15 59 S), a package of measures its sponsor said are designed to make insurance more affordable across the state by strengthening fraud enforcement, improving storm-claim handling and tightening uninsured-motorist enforcement.

The bill was presented to the subcommittee by the bill presenter, who said the measure bundles proposals developed by an 18-member study committee that held hearings across Georgia and solicited input from the insurance industry and academic experts. “The bill before you has a lot of good measures to make insurance more affordable and to make claims run more smoothly for the benefit of Georgians,” the Presenter said.

Key provisions described during the presentation included fee increases and expanded criminal penalties in Section 2 intended to deter runners and steers who solicit claims; Section 3 directing the insurance commissioner to work with the Department of Economic Development to recruit insurers to domicile or open regional offices in Georgia; and Section 4, a storm-claim mitigation package the presenter said was informed by lessons from Hurricane Helene.

The Presenter cited market signals he said reflect recent improvements: “We've had 10 companies file rate decreases recently and 2 companies enter the market, American Integrity Insurance and Donegal,” he said. The presenter also described the bill's Section 7 as extending the statute of limitations for property and casualty claims to two years, citing a court matter arising after Hurricane Michael.

Senator Larry Walker, president pro tempore, praised the package and noted other recent state reforms he said have supported market stability, including fortified-home credits and a disaster savings account program. “We've made some really good strides, and I think this just continues to carry forward our interest in helping Georgians be able to afford insurance,” Walker said.

Senator Merrick asked whether the bill's Section 12 derived from Senate Bill 503 (a rental marketplace/insurance provision). The Presenter confirmed the language was added by the Senate after the House version and noted Senator Harbin had sponsored the original SB 503.

On enforcement and revenue, the Presenter told the committee the proposal does not change the premium tax rate but would coordinate recruitment of insurers; he characterized the statewide premium tax pool as roughly $2 billion annually, split between state and local governments. The transcript includes an estimate the state has about 9.1 million licensed drivers and an uninsured motorist rate “about 20%,” cited by the Presenter as a driver for stronger uninsured-motorist enforcement in Section 10.

After brief discussion, Senator Merrick moved to pass HB 1344 (LC 46 15 59 S). The subcommittee took a voice/hand-raise vote and approved the motion; the transcript records a committee approval by voice vote but does not include a numerical roll-call tally or named vote counts.

The Presenter said the committee would continue to refine details with members and staff and may return with additional matters later in the week. Senator Walker closed by reminding members of the National Conference of Insurance Legislators (NCOIL) meeting in April in Louisville, Kentucky. The subcommittee adjourned shortly after the vote.