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Bill

Bill

LC 3962

Generally revise insurance and insurance company laws

2025 Regular Session

Broadly updates insurance laws to modernize regulation and protections for insurers and consumers; however, the draft died in process and has no current effect.

(LC) Draft Died in Process
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WeVote Research Nonpartisan
Bill Summary · LC 3962

Summary: LC 3962 — Generally revise insurance and insurance company laws

Overview

LC 3962 is a proposed bill titled “Generally revise insurance and insurance company laws.” The bill appears to aim at a broad modernization or consolidation of the existing insurance statutes. As of the provided information, the bill did not advance and is listed as “Draft Died in Process.”

  • Introduced: December 17, 2024
  • Classification: bill
  • Subject: Insurance
  • Status: Draft Died in Process
  • Legislative Actions:
    • 2024-12-17: Drafter Assigned
    • 2025-05-22: Draft Died in Process

Purpose and Intent

The bill’s stated purpose, from its title, is to generally revise insurance and insurance company laws. No specific aims or policy objectives are included in the provided text. If enacted, the bill would likely seek to modernize regulatory structure, align with current market practices, and address consumer protections and industry requirements within the state’s insurance framework.

Potential Provisions (categories commonly addressed in broad insurance code revisions)

Note: The exact text and provisions are not provided. The following categories reflect typical components of comprehensive insurance code revisions and are hypothetical indicators of what such a bill might cover.

  • Regulatory framework modernization
    • Streamlining statutes, aligning cross-referenced provisions, and updating regulatory standards.
  • Solvency and financial requirements
    • Capital, reserves, risk-based capital, and supervision procedures for insurers.
  • Market conduct and consumer protections
    • Fair practices, complaint handling, disclosure requirements, and rate/form filing processes.
  • Licensing, exams, and enforcement
    • Licensing of insurers, agents, and other key roles; department authority and penalties for violations.
  • Producer licensing and regulation
    • Qualifications, training requirements, continuing education, and eligibility standards.
  • Rates, forms, and approvals
    • Filing timelines, rate justification standards, and regulatory review procedures.
  • Guaranty associations and insolvency procedures
    • Provisions governing insurer insolvency, liquidation, and policyholder protections.
  • Data privacy and cybersecurity
    • Data handling standards relevant to insurance operations and consumers.
  • Transition and effective dates
    • Any phased implementation, retroactivity, or sunset provisions.

Who Would Be Affected

  • Insurance companies and their affiliates
  • Insurance producers (agents/brokers)
  • Consumers and policyholders
  • State regulatory department or commissioner/agency
  • Industry trade groups and legal practitioners

Status and Timeline

  • Status: Draft Died in Process (as of May 22, 2025)
  • Implication: The bill has not been enacted and no substantive provisions are in effect. It could be reconsidered or reintroduced in a future session.

Next Steps / Monitoring

  • If interested, monitor the legislative database for a future reintroduction or updated draft.
  • Review any new fiscal notes, committee reports, or hearings if a successor bill emerges to understand potential impacts and funding implications.

Compiled from official sources — confirm details with the bill’s official record.

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