05 LC 18
4400S
The
Senate Insurance and Labor Committee offered the following substitute to HB
425:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 33 of the Official Code of Georgia Annotated, relating to insurance,
so as to permit insurers to provide food or refreshments under certain
circumstances to current or prospective clients during sales presentations and
seminars provided that no insurance or annuity applications or contracts are
offered or accepted at such presentations or seminars; to provide that certain
rates with regard to certain property and casualty 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.
Title
33 of the Official Code of Georgia Annotated, relating to insurance, is amended
by striking subparagraph (b)(8)(C) of Code Section 33-6-4, relating to unfair
methods of competition and unfair or deceptive acts or practices, and inserting
in lieu thereof a new subparagraph (b)(8)(C) to read as follows:
"(C)
Nothing in subparagraphs (A) and (B) of this paragraph shall be construed as
including within the definition of discrimination or rebates any of the
following practices:
(i)
In the case of any contract of life insurance or life annuity, paying bonuses to
policyholders or otherwise abating their premiums in whole or in part out of
surplus accumulated from nonparticipating insurance, provided that any bonuses
or abatement of premiums shall be fair and equitable to policyholders and for
the best interest of the company and its policyholders;
(ii)
In the case of life or accident and sickness insurance policies issued on the
industrial debit or weekly premium plan, making allowance in an amount which
fairly represents the saving in collection expense to policyholders who have
continuously for a specified period made premium payments directly to an office
of the insurer;
(iii)
Making a readjustment of the rate of premium for a policy based on the loss or
expense experienced at the end of the first or any subsequent policy year of
insurance thereunder, which adjustment may be made retroactive only for the
policy year;
(iv)
Issuing life or accident and sickness insurance policies covering bona fide
employees of the insurer at a rate less than the rate charged other persons in
the same class;
(v)
Issuing life or accident and sickness policies on a salary-saving, payroll
deduction, preauthorized, postdated, automatic check, or draft plan at a reduced
rate commensurate with the savings made by the use of such plan;
(vi)
Paying commissions or other compensation to duly licensed agents or brokers or
allowing or returning dividends, savings, or unabsorbed premium deposits to
participating policyholders, members, or subscribers;
(vii)
Paying by an insurance agent of part or all of the commissions on public
insurance to a nonprofit association of insurance agents which is affiliated
with a recognized state or national insurance
agentś
association, which commissions are to be used in whole or in part for one or
more civic enterprises;
or
(viii)
Paying for food or refreshments by an insurer or an agent, broker, or employee
of an insurer for current or prospective clients during sales presentations and
seminars provided that no insurance or annuity applications or contracts are
offered or accepted at such presentations or
seminars;".
SECTION
2.
Said
title is further amended by adding a new subsection (h) to Code Section 33-9-21,
relating to maintenance and filing rates, rating plans, rating systems, or
underwriting rules, to read as follows:
"(h)(1)
This subsection shall apply to all personal lines of property and casualty
insurance. This subsection shall 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 subsections (b) and (d) of this Code
section, a rate, rating plan, rating system, or underwriting rule submission by
an insurer may become effective upon filing, unless a future effective date is
specified, if the rate, rating plan, rating system, or underwriting rule filing
individually or in combination with any other rate, rating plan, rating system,
or underwriting rule filing effective within the last 12 months submitted by, or
on behalf of, the insurer provides for an overall state-wide average rate level
increase or decrease of not greater than 6 percent. The rate level change for
any individual insured may not be increased or decreased by more than 9.99
percent.
(3)
A filing submitted pursuant to paragraph (2) of this subsection shall be
considered to comply with state law. However, if, within 45 days following
receipt of the filing, the Commissioner determines that it does not meet the
requirements of this title in that such filing is unfairly discriminatory, is
not actuarially supported, is based upon fictitious groupings, is inadequate, or
is excessive, the Commissioner shall notify each insurer that made the filing of
the specific reason or reasons that the Commissioner has determined that such
filing does not meet the requirements of this title. Such insurers may, not
more than ten days after receipt of such notice from the Commissioner, petition
the Commissioner for a hearing on such determination. Such hearing shall be
held under the provisions of Chapter 13 of Title 50, the 'Georgia Administrative
Procedure Act,' and shall be conducted by the Office of State Administrative
Hearings. Such hearing shall be held within 30 days after such petition is
received by the department unless such time period is extended by agreement of
all parties. The Commissioner shall give adequate notice of the time and place
of such hearing. At such hearing, the burden shall be on the Commissioner to
demonstrate why such filing does not meet the requirements of this title. If,
upon the conclusion of such hearing, the determination by the Commissioner is
upheld, 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, except that, in any final
disposition made within 45 days following the receipt of the filing, the
Commissioner may enter an order specifying the rate filing to be used by the
insurer and the manner in which refunds are to be made, if appropriate. The
aggrieved party to the hearing shall have a right of appeal to the Superior
Court of Fulton County in accordance with Chapter 13 of Title 50.
(4)
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 as
provided in this Code section.
(5)
Any insurer that files a change in rates shall provide each of its insureds with
at least 45
dayś
notice of such new rates in the manner provided in Chapter 24 of this title
prior to the termination of the
insured́s
policy period then in
effect."
SECTION
3.
Said
title is further amended by adding a new subsection (e) to Code Section 33-9-36,
relating to unauthorized premiums and unauthorized inducements, to read as
follows:
"(e)
Nothing in this Code section shall be construed as prohibiting the payment for
food or refreshments by an insurer or an agent, broker, or employee of an
insurer for current or prospective clients during sales presentations and
seminars provided that no insurance or annuity applications or contracts are
offered or accepted at such presentations or
seminars."
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.