Georgia Lawmakers Reject Flex Band Rating Bill

Despite the apparent support of Georgia House leaders, the Republican-controlled House failed late March 11 to pass House Bill 683 and send it to the Senate. Friday was the 30th day of the legislative session and the deadline for lawmakers to move bills from one chamber to the other.

Only 42 of the House’s 180 members voted for HB 683, which would have implemented a 6 percent flex band for personal lines and imposed a cap of 9.9 percent on individual policies. The bill also included a four-year sunset provision.

“The National Association of Mutual Insurance Companies is disappointed the House leadership was not able to persuade its colleagues to support this legislation,” David Reddick, NAMIC state affairs manager said. “We were surprised by the vote total, but it confirms that more work is needed to educate legislators about the benefits of this rating system.”

Before the session began, Reddick noted that lobbyists decided not to pursue rate modernization legislation, believing that with the influx of new, mostly Republican lawmakers, it was going to take more time to educate representatives on flex rating.

However, after the session began, the new Republican leadership decided a bill should be introduced, so House Bill 427, a 5 percent flex band that would apply only to auto policies, was introduced.
Two weeks ago, HB 683 was introduced, with the version approved by a House Insurance subcommittee calling for a phased-in approach that was to feature implementation of 5 and 7 percent flex bands over a four-year span before moving to a “use and file” system.

The present language for HB 683 was then substituted when it came before the full House Insurance Committee.

Topics Legislation Georgia