Georgia proposes changes for personal auto rate filing rules
The proposed change was sparked by a statewide double-digit rate increase by Allstate in 2022.
The Georgia legislature passed a bill that would give the state’s insurance commissioner more oversight on personal auto insurance rates for policies that offer more than the mandatory minimum limits, according to the state’s Office of the Commissioner of Insurance and Safety Fire.
Under Georgia’s current rate-filing system, the insurance commissioner only has the authority to approve or disapprove filings for minimum-limit policies, whiles all other filings go into effect immediately through a “file and use” provision. The bill that passed the state legislature maintains the commissioner’s authority over mandatory minimum-limit filings, while giving the commissioner 60 days to review all other filings.
The bill awaits Georgia Governor Brian Kemp’s signature. If signed into law, the new rules would go into effect on July 1, 2023, according to the state’s insurance department.
“Heading into this legislative session, we made it a priority to work with the General Assembly to give our office more authority over car insurance rate filings that impact hardworking Georgia families,” Georgia Insurance and Safety Fire Commissioner John F. King said in a release. “This legislation will allow us to review all filings before they go into effect — while at the same time guaranteeing speed to market, which is critical for the industry.”
Allstate’s 40% rate increase
In August 2022, Allstate filed a 25% rate increase for all of its personal auto policyholders in Georgia. The filing drew a sharp rebuke from the state’s insurance department, with Commissioner King saying Allstate had exploited a loophole in state law to institute the increase.
“This latest increase means Allstate has now bypassed our office to raise overall rates in Georgia by 40% in this calendar year alone,” King said in an August 2022 release. “In response, I have begun conversations with our legislative leaders regarding changes to state law to give our office additional authorities to protect consumers from these types of inexcusable actions.”
It appears those summer 2022 conversations have born fruit.
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