hb427.html
05 LC 28 2212
House Bill 427
By: Representatives Harbin of the 118th, Keen of the 179th, and Ehrhart of the 36th

A BILL TO BE ENTITLED
AN ACT

To amend Chapter 9 of Title 33 of the Official Code of Georgia Annotated, relating to regulation of rates, underwriting rules, and related organizations, so as to provide that certain rates with regard to private passenger motor vehicle insurance may go into effect without the necessity of approval by the Commissioner of Insurance; to provide for procedures for such filings; to provide for notice and hearing in the case of filings that are not in compliance; to provide for other filings; to provide for the contents of filings; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.
Chapter 9 of Title 33 of the Official Code of Georgia Annotated, relating to regulation of rates, underwriting rules, and related organizations, is amended by adding a new subsection (h) to Code Section 33-9-21, relating to maintenance and filing of rates, rating plans, rating systems, or underwriting rules, to read as follows:
"(h)(1) This subsection shall only apply to personal private passenger motor vehicle insurance as described in subsection (b) of this Code section. This subsection does not apply to advisory organizations or to any impaired or insolvent insurer operating under a rehabilitation plan, an order of supervision, or an impaired financial condition as determined by the Commissioner.
(2) Notwithstanding the requirements of subsection (b) of this Code section, a filing made by an insurer that provides for an overall state-wide rate increase or decrease may take effect without prior approval if the rate level change is not greater than 5 percent. The rate level change for any individual insured may not be increased more than 9.99 percent.

(3) An insurer may make multiple rate filings under this subsection during any 12 month period, provided that the cumulative rate level change is within the limitation specified in paragraph (2) of this subsection. For an insurer adopting a rating organization prospective loss cost filing, the cumulative rate level change includes both the rating organization prospective loss change as well as the insureŕs loss cost adjustment change.
(4) Notwithstanding any other provision of law to the contrary, for any policies governed by this subsection, a filing that produces a rate level change within the limitations provided in paragraph (2) of this subsection shall become effective without prior approval and may take effect on the date specified in the filing but not earlier than the date it is received by the department. No rate level change within the limitation specified in paragraph (2) of this subsection may be implemented until the onset of a new policy period.
(5) A filing submitted pursuant to paragraph (2) of this subsection must include an exhibit showing the calculation of the overall rate level change and an exhibit showing the insureŕs expense provisions. An insurer submitting a loss cost adjustment filing must include supporting information showing how the loss cost adjustment is calculated. The Commissioner may request additional supporting information if the Commissioner does not have enough information upon which to determine if the filing meets the requirements of this chapter.
(6) A filing submitted pursuant to paragraph (2) of this subsection shall be considered to comply with state law. However, if, within 30 days following receipt of the filing, the Commissioner determines that it does not meet the requirements of this title, the Commissioner shall, after a hearing held upon not less than ten dayś written notice, given to each insurer that made the filing and specifying the matters to be considered at the hearing, issue an order specifying in detail the provisions of this title that the insurer has violated and the reasons the filing is not in compliance. The order shall state a reasonable future date on which the filing is to be considered no longer effective. An order by the Commissioner pursuant to this paragraph shall be prospective and shall not affect any contract issued or made before the effective date of the order.
(7) An insureŕs rate level increase or decrease filing falling outside of the limitation provided in paragraph (2) of this subsection shall be subject to review and approval as provided in subsection (b) of this Code section.
(8) During any 12 month period, an insurer shall be allowed to make additional filings subject to review and approval pursuant to subsection (b) of this Code section."

SECTION 2.
All laws and parts of laws in conflict with this Act are repealed.