05 LC 28
2424S
The
House Committee on Insurance offers the following substitute to HB
683:
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 provide that all contested hearings before the Commissioner of
Insurance be heard by the Office of State Administrative Hearings; 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 provide
an effective date and for automatic repeal; 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 subsection (a) of Code Section 33-2-17, relating to the conduct of
hearings by the Commissioner generally, and inserting in lieu thereof a new
subsection (a) to read as follows:
"(a)
The Commissioner may hold hearings for any purpose within the scope of this
title as he or
she may deem
necessary;
provided, however, that all contested hearings, as defined in paragraph (2) of
Code Section 50-13-2, shall be conducted by the Office of State Administrative
Hearings."
SECTION
2.
Said
title is further amended by striking subsection (a) of Code Section 33-2-21,
relating to the presiding officer at a hearing, and inserting in lieu thereof a
new subsection (a) to read as follows:
"(a)
The hearing shall be presided over by the Commissioner or his
or
her designated
representative;
provided, however, that all contested hearings, as defined in paragraph (2) of
Code Section 50-13-2, shall be conducted and presided over by the Office of
State Administrative
Hearings."
SECTION
3.
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, including
homeowneŕs
insurance, in this state. This subsection shall not apply to
workeŕs
compensation insurance or medical or professional malpractice 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 60
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.
(6)
This subsection shall stand repealed by operation of law on June 30,
2009."
SECTION
4.
This
Act shall become effective on July 1, 2005.
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.