Georgia House Bill HB345

Georgia 2025-2026 Regular Session

• Introduced: 2/10/25

Caption

Insurance; prohibit raises in liability insurance rates for five years

Summary

House Bill 345 would amend Georgia’s insurance code to bar insurers from increasing liability insurance rates for a five-year period. The bill adds a new Code section stating that, notwithstanding any other law, no insurer may increase liability insurance rates, and it sets the prohibition to expire automatically on January 1, 2031. The measure would take effect on January 1, 2026, and would apply to policies, contracts, and certificates executed, delivered, issued for delivery, continued, or renewed on or after that date. In practical terms, it would freeze liability insurance rates for affected policies during the covered period, limiting insurers’ ability to adjust premiums upward in Georgia.

Impact

HB345 would directly alter Title 33 of the Official Code of Georgia Annotated by creating a new insurance provision that overrides conflicting law and prohibits liability insurance rate increases for the specified period. It would affect insurers writing liability coverage in Georgia, as well as policyholders whose liability policies are issued, renewed, or continued after the effective date. The bill includes an automatic repeal date, so the rate-freeze authority would sunset on January 1, 2031 unless later extended or replaced.

Sentiment

Based on the available record, there is no committee transcript or vote history showing debate, amendments, or recorded opposition. The bill’s caption and text suggest a consumer-protection or cost-control approach aimed at limiting premium increases, but the absence of discussion or votes means the overall legislative sentiment cannot be determined from the provided materials. The bill appears straightforward and directive in its approach.

Contention

The main potential point of contention is the bill’s broad prohibition on rate increases, which could be viewed by insurers and industry stakeholders as restricting actuarial pricing, underwriting flexibility, and responses to claims costs or inflation. Supporters would likely favor the measure as a way to protect consumers and stabilize liability insurance costs, while opponents may argue it could distort the market or reduce availability of coverage. No specific objections or supporters are identified in the provided context.