Insurance agents who sell group health policies would be guaranteed a minimum 5 percent commission under legislation the Georgia House approved Wednesday.
House Bill 838, by Rep. Shaw Blackmon, R-Bonaire, sets the premium commissions for agents who sell group health policies as well as a 4 percent minimum commission for individual health benefit plans.
“We’re noticing that some of the carriers are in fact eliminating the premium part that they’re sending to their local agents,” Blackmon said. “We’re creating a floor.”
The bill protects independent agents who sell policies on behalf of large insurance carriers.
Rep. Carolyn Hugley, D-Columbus, said lawmakers have heard from agents about the need for a minimum commission.
“Agents came to us and complained to us how they were not being fairly compensated,” she said. “This aims to fix this issue.”
Hugley, who owns a State Farm franchise in Columbus, recused herself from the vote. The bill passed 145-17 and now goes to the Senate.
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