Georgia Senate Bill SB507

Georgia 2025-2026 Regular Session

• Introduced: 2/12/26
• Refer: 2/17/26

Caption

Underwriting and Rate Risking; use of credit information and credit scores in underwriting, rating risks, adverse actions, or certain other actions by insurance companies; prohibit

Impact

If enacted, SB507 will significantly alter the landscape of personal insurance underwriting in Georgia. The bill will prevent insurers from using credit-based information to influence decisions on policy pricing, eligibility, and even the issuance or cancellation of policies. This shift could help to increase accessibility for consumers who may have poor credit scores but are otherwise responsible individuals, potentially resulting in more equitable insurance practices and broader access to essential coverage.

Summary

Senate Bill 507 aims to reform the personal insurance underwriting process in the state of Georgia by prohibiting insurance companies from using credit information and credit scores in their evaluations. The bill seeks to amend Article 4 of Chapter 24 of Title 33 of the Official Code of Georgia Annotated, specifically targeting how insurers assess risk and determine eligibility for coverage. By doing so, the bill intends to protect consumers from being adversely affected by their credit history when applying for personal insurance policies, such as auto and homeowners insurance.

Contention

The main points of contention around SB507 likely revolve around the implications for insurers and the potential impacts on the overall insurance market. Proponents argue that the bill promotes fairness and protects consumers from arbitrary penalties based on credit scores. However, critics might argue that removing credit information from underwriting could lead to higher risks for insurers and, consequently, higher premiums for those deemed low-risk. The debate may hinge on the balance between consumer protection and the financial viability of insurance companies in managing risk.