Additional rules on third-party litigation funding include
Georgia State Representative Matt Reeves (R-Deluth)
Readers often find interest in what other state legislatures are thinking. We closely followed the state of Georgia that just concluded its 2026 session in early April and the most significant bill that passed was HB 1344, the Georgia Insurance Affordability and Claims Integrity Act.
For the bill’s main sponsor, Rep. Matt Reeves (R-Duluth), this is the “strongest insurance legislation in the country,” backed by an insurance agents’ group, a national carrier group, and by state regulators. The sweeping changes are aimed at making property insurance more affordable for Georgians, reducing fraud and inefficiencies in the process.
Starting with auto fraud, the bill specifically outlaws the practice of “runners” sending auto accident victims to health care providers, and stops clinics and doctors from compensating the runners. Violations of this law would be considered felonies, and offenders could face up to 10 years in prison and fines up to $200,000. To catch the crooks, the state insurance commissioner is now authorized to hire prosecutors.
Expanding powers for the Office of the Commissioner of Insurance (OCI) also include the ability to consider complaints against carriers, litigation, penalties, and ongoing investigations when reviewing rate filings. Reeves’ example involved many insurance companies dropping policyholders with large trees on their property. Now, due to HB1344, the commissioner can step in and stop the carriers from requiring the trees be cut down. Carriers continuing to engage in unfair trade practices would see fines go up fivefold to $5,000 per violation, and carriers and individuals that violate cease-and-desist orders could see up to $15,000 fines per violation. The bill also establishes new rules on use of unmanned aerial imagery used as the basis for cancelling or nonrenewing a residential property insurance policy. The bill gives the OCI teeth to catch bad actors and restore some much-needed balance in the insurance landscape.
Other significant changes include an agent-notification provision, wherein a policyholder informing their agent of a loss serves as a notice of claim to the carrier. HB1344 also bars drafting policies that require claim lawsuit filings within two years, extending the standard practice to four years. In a similar vein to the My Safe Florida Home program, Georgia has now instated a wind-mitigation program funded through premium taxes that will provide matching grants of up to $6,000 to help retrofit homes across the state.
In many ways, Georgia’s regulatory landscape appears very similar to Florida’s in that the legislature recognizes that putting the tools in place to create a vibrant competitive market is what is best for consumers. Florida has passed similar legislation (the 2022 and 2023 reforms) and our market is roaring. It is interesting to note that one of the bills that passed (HB 945) creates a registry of third-party litigation funders, along with disclosures and penalties for failing to do so, building on last year’s law. That is the next step that must be taken in Florida to reign in the multi-billion-dollar litigation funding machines.
LMA Newsletter of 5-4-26
