reglab/statecodes huggingface dataset:
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-18 - Termination of policy coverage

(a)
All policies, including bonds and other noncancelable business, other than life or accident and sickness insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of:
(1)
A period of 30 days from the date of entry of the liquidation orders;
(2)
The expiration of the policy coverage;
(3)
The date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy;
(4)
The date on which the liquidator effects a transfer of the policy obligation pursuant to paragraph (9) or (10) of subsection (a) of Code Section
33-37-20
; or
(5)
The date proposed by the liquidator and approved by the court to cancel coverage.
(b)
An order of liquidation under Code Section
33-37-17
shall terminate coverages at the time specified in subsection (a) of this Code section for purposes of any other statute.
(c)
Policies of life or accident and sickness insurance or annuities shall continue in force for such period and under such terms as is provided for by any applicable guaranty association or foreign guaranty association.
(d)
Policies of life or accident and sickness insurance or annuities or any period or coverage of such policies not covered by a guaranty association or foreign guaranty association shall terminate under subsections (a) and (b) of this Code section.
Amended by 2019 Ga. Laws 140,§ 136, eff. 7/1/2019.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-19 - Petition for dissolution of corporate existence

The Commissioner may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time he applies for a liquidation order. The court shall order dissolution of the corporation upon petition by the Commissioner upon or after the granting of a liquidation order. If the dissolution has not previously been ordered, it shall be effected by operation of law upon the discharge of the liquidator if the insurer is insolvent but may be ordered by the court upon the discharge of the liquidator if the insurer is under a liquidation order for some other reason.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-21 - Notice of liquidation

(a)
Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible:
(1)
By first-class mail and either by telegram or telephone to the commissioner of insurance of each jurisdiction in which the insurer is doing business;
(2)
By first-class mail to any guaranty association or foreign guaranty association which is or may become obligated as a result of the liquidation;
(3)
By first-class mail to all insurance agents of the insurer;
(4)
By first-class mail to all persons known or reasonably expected to have claims against the insurer, including all policyholders, at their last known address as indicated by the records of the insurer; and
(5)
By publication in a newspaper of general circulation in the county in which the insurer has its principal place of business and in such other locations as the liquidator deems appropriate.
(b)
Notice to potential claimants under subsection (a) of this Code section shall require claimants to file with the liquidator their claims together with proper proofs thereof under Code Section
33-37-35
, on or before a date the liquidator shall specify in the notice. Although an earlier date may be set by the liquidator, the last day to file claims shall be no later than 18 months following the order of liquidation. The liquidator need not require persons claiming cash surrender values or other investment values in life insurance and annuities to file a claim. All claimants shall have a duty to keep the liquidator informed of any changes of address.
(c)
(1)
Notice under subsection (a) of this Code section to agents of the insurer and to potential claimants who are policyholders shall include, where applicable, notice that coverage by state guaranty associations may be available for all or part of policy benefits in accordance with applicable state guaranty laws.
(2)
The liquidator shall promptly provide to the guaranty associations such information concerning the identities and addresses of such policyholders and their policy coverages as may be within the liquidator's possession or control and otherwise cooperate with guaranty associations to assist them in providing to such policyholders timely notice of the guaranty associations' coverage of policy benefits, including, as applicable, coverage of claims and continuation or termination of coverages.
(d)
If notice is given in accordance with this Code section, the distribution of assets of the insurer under this chapter shall be conclusive with respect to all claimants, whether or not they received notice.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-22 - Responsibility of agent to provide information; penalty for violation

(a)
Every person who receives notice in the form prescribed in Code Section
33-37-21
that an insurer which he represents as an agent is the subject of a liquidation order, shall within 30 days of such notice provide to the liquidator, in addition to the information he may be required to provide pursuant to Code Section
33-37-6
, the information in the agent's records related to any policy issued by the insurer through the agent and, if the agent is a general agent, the information in the general agent's record related to any policy issued by the insurer through an agent under contract to him, including the name and address of such subagent. A policy shall be deemed issued through an agent if the agent has a property interest in the expiration of the policy or if the agent has had in his possession a copy of the declarations of the policy at any time during the life of the policy, except where the ownership of the expiration of the policy has been transferred to another.
(b)
Any agent failing to provide information to the liquidator as required in subsection (a) of this Code section may be subject to payment of a penalty of not more than $1,000.00 and may have his licenses suspended, said penalty to be imposed after a hearing held by the Commissioner.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-23 - Stay of collateral proceedings against insurer; authority of liquidator to intervene in, and defend, out-of-state action

(a)
Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, no action at law or equity or in arbitration shall be brought against the insurer or liquidator, whether in this state or elsewhere, nor shall any such existing actions be maintained or further presented after issuance of such order. The courts of this state shall give full faith and credit to injunctions against the liquidator or the company or the continuation of existing actions against the liquidator or the company, when such injunctions are included in an order to liquidate an insurer issued pursuant to corresponding provisions in other states. Whenever, in the liquidator's judgment, protection of the estate of the insurer necessitates intervention in an action against the insurer that is pending outside this state, he may intervene in the action. The liquidator may defend any action in which he intervenes under this Code section at the expense of the estate of the insurer.
(b)
The liquidator may, upon or after an order for liquidation, within two years or such other longer time as applicable law may permit, institute an action or proceeding on behalf of the estate of the insurer upon any cause of action against which the period of limitation fixed by applicable law has not expired at the time of the filing of the petition upon which such order is entered. Where, by any agreement, a period of limitation is fixed for instituting a suit or proceeding upon any claim, or for filing any claim, proof of claim, proof of loss, demand, notice, or the like or where in any proceeding, judicial or otherwise, a period of limitation is fixed, either in the proceeding or by applicable law, for taking any action, filing any claim or pleading, or doing any act and where in any such case the period had not expired at the date of the filing of the petition, the liquidator may, for the benefit of the estate, take any such action or do any such act required of or permitted to the insurer within a period of 180 days subsequent to the entry of an order for liquidation or within such further period as is shown to the satisfaction of the court not to be unfairly prejudicial to the other party.
(c)
No statute of limitation or defense of laches shall run with respect to any action against an insurer between the filing of a petition for liquidation against an insurer and the denial of the petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least 60 days after the petition is denied.
(d)
Any guaranty association or foreign guaranty association shall have standing to appear in any court proceeding concerning the liquidation of an insurer if such association is or may become liable to act as a result of the liquidation.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-24 - Time for filing list of assets; reducing assets to liquidity

(a)
As soon as practicable after the liquidation order but not later than 120 days thereafter, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented from time to time as the liquidator may determine. One copy shall be filed in the office of the clerk of the superior court and one copy shall be retained for the liquidator's files. All amendments and supplements shall be similarly filed.
(b)
The liquidator shall reduce the assets to a degree of liquidity that is consistent with the effective execution of the liquidation.
(c)
A submission to the court for disbursement of assets in accordance with Code Section
33-37-33
fulfills the requirements of subsection (a) of this Code section.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-26 - Transfer of property in good faith; recording copy of petition as notice of seizure of property

(a)
After a petition for rehabilitation or liquidation has been filed, a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred. The commencement of a proceeding in rehabilitation or liquidation shall be constructive notice upon the recording of a copy of the petition for or order of rehabilitation or liquidation with the recorder of deeds in the county where any real property in question is located. The exercise by a court of the United States or any state or jurisdiction to authorize or effect a judicial sale of real property of the insurer within any county in any state shall not be impaired by the pendency of such a proceeding unless the copy is recorded in the county prior to the consummation of the judicial sale.
(b)
After a petition for rehabilitation or liquidation has been filed and before either the receiver takes possession of the property of the insurer or an order of rehabilitation or liquidation is granted:
(1)
A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred;
(2)
A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part thereof, to the insurer or upon his order, with the same effect as if the petition were not pending;
(3)
A person having actual knowledge of the pending rehabilitation or liquidation shall be deemed not to act in good faith; and
(4)
A person asserting the validity of a transfer under this Code section shall have the burden of proof. Except as elsewhere provided in this Code section, no transfer by or on behalf of the insurer after the date of the petition for liquidation by any person other than the liquidator shall be valid against the liquidator.
(c)
Every person receiving any property from the insurer or any benefit thereof which is a fraudulent transfer under subsection (a) of this Code section shall be personally liable therefor and shall be bound to account to the liquidator.
(d)
Nothing in this chapter shall impair the negotiability of currency or negotiable instruments.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-26.1 - Limitations on ability of receiver to void transfer of certain property in connection with federal home loan bank security agreement; transfer avoidance under certain circumstances

The receiver for an insurer shall not void any transfer of, or any obligation to transfer, money or any other property arising under or in connection with any federal home loan bank security agreement; any pledge, security, collateral, or guarantee agreement; or any other similar arrangement or credit enhancement relating to a federal home loan bank security agreement made in the ordinary course of business and in compliance with the applicable federal home loan bank agreement. However, a transfer may be avoided under this Code section if the transfer was made with intent to hinder, delay, or defraud the insurer, the receiver for the insurer, or existing or future creditors. This Code section shall not affect a receiver's rights regarding advances to an insurer in delinquency proceedings pursuant to
12 C.F.R. Section 1266.4
.
Amended by 2019 Ga. Laws 140,§ 137, eff. 7/1/2019.
Added by 2015 Ga. Laws 67,§ 2-3, eff. 7/1/2015.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-28 - Disallowing preferred creditor's claims

(a)
No claims of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance voidable under this chapter shall be allowed unless he surrenders the preference, lien, conveyance, transfer, assignment, or encumbrance. If the avoidance is effected by a proceeding in which a final judgment has been entered, the claim shall not be allowed unless the money is paid or the property is delivered to the liquidator within 30 days from the date of the entering of the final judgment, except that the court having jurisdiction over the liquidation may allow further time if there is an appeal or other continuation of the proceeding.
(b)
A claim allowable under subsection (a) of this Code section by reason of the avoidance, whether voluntary or involuntary, a preference, lien, conveyance, transfer, assignment, or encumbrance, may be filed as an excused late filing under Code Section
33-37-34
if filed within 30 days from the date of the avoidance, or within the further time allowed by the court under subsection (a) of this Code section.
Amended by 2019 Ga. Laws 140,§ 138, eff. 7/1/2019.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-29 - Mutual debts and credits

(a)
In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this chapter, such credits and debts shall be set off and the balance only shall be allowed or paid, except as provided in subsection (b) of this Code section.
(b)
No setoff shall be allowed in favor of any person where:
(1)
The obligation of the insurer to the person would not, at the date of the entry of any liquidation order or otherwise, as provided in Code Section
33-37-17
, entitle him to share as a claimant in the assets of the insurer;
(2)
The obligation of the insurer to the person was purchased by or transferred to the person with a view of its being used as a setoff; or
(3)
The obligation of the person is to pay an assessment levied against the members of a mutual insurer or against the subscribers of a reciprocal insurer or is to pay a balance upon the subscription to the capital stock of a stock insurer.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-30 - Liquidator's report to court; assessment against members of insurer; procedure when assessment not paid

(a)
As soon as practicable but not more than two years from the date of an order of liquidation under Code Section
33-37-17
of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth:
(1)
The reasonable value of the assets of the insurer;
(2)
The insurer's probable total liabilities;
(3)
The probable aggregate amount of the assessment necessary to pay all claims of creditors and expenses in full, including expenses of administration and costs of collecting the assessment; and
(4)
A recommendation as to whether or not an assessment should be made and in what amount.
(b)
(1)
Upon the basis of the report provided in subsection (a) of this Code section, including any supplements and amendments thereto, the superior court may levy one or more assessments against all members of the insurer who are subject to assessment.
(2)
Subject to any applicable legal limits on assessability, the aggregate assessment shall be for the amount that the sum of the probable liabilities, the expenses of administration, and the estimated cost of collection of the assessment exceeds the value of existing assets, with due regard being given to assessments that cannot be collected economically.
(c)
After levy of assessment under subsection (b) of this Code section, the liquidator shall issue an order directing each member who has not paid the assessment pursuant to the order to show cause why the liquidator should not pursue a judgment therefor.
(d)
The liquidator shall give notice of the order to show cause by publication and by first-class mail to each member liable thereunder mailed to his last known address as it appears on the insurer's records, at least 20 days before the return date of the order to show cause.
(e)
(1)
If a member does not appear and serve duly verified objections upon the liquidator on or before the return date of the order to show cause under subsection (c) of this Code section, the court shall make an order adjudging the member liable for the amount of the assessment against him pursuant to subsection (c) of this Code section, together with costs, and the liquidator shall have a judgment against the member therefor.
(2)
If on or before such return date the member appears and serves duly verified objections upon the liquidator, the Commissioner may hear and determine the matter or may appoint a referee to hear it and make such order as the facts warrant. In the event that the Commissioner determines that such objections do not warrant relief from assessment, the member may request the court to review the matter and vacate the order to show cause.
(f)
The liquidator may enforce any order or collect any judgment under subsection (e) of this Code section by any lawful means.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-31 - Liability of reinsurers

The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings regardless of any provision in the reinsurance contract or other agreement. The reinsurance shall be payable under a contract or contracts reinsured by the assuming insurer on the basis of reported claims allowed by the liquidation court, without diminution because of the insolvency of the ceding insurer. Such payments shall be made directly to the ceding insurer or to its domiciliary liquidator except:
(1)
Where the contract or other written agreement specifically provides for another payee of such reinsurance in the event of the insolvency of the ceding insurer; or
(2)
Where the assuming insurer, with the consent of the direct insured or insureds, has assumed such policy obligations of the ceding insurer as direct obligations of the assuming insurer to the payees under such policies and in substitution for the obligation of the ceding insurer to such payees.
Amended by 2001 Ga. Laws 279, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-32 - Premiums due during pendency of liquidation action; penalties for violation; notice; right to appeal

(a)
(1)
An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay any unpaid premium for the full policy term due the insurer at the time of the declaration of insolvency, whether earned or unearned, as shown on the records of the insurer. The liquidator shall also have the right to recover from such person any part of an unearned premium that represents commission of such person. Credits or setoffs or both shall not be allowed to an agent, broker, or premium finance company for any amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured.
(2)
An insured shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency, as shown on the records of the insurer.
(b)
Upon satisfactory evidence of a violation of this Code section, the Commissioner may pursue either one or both of the following courses of action:
(1)
Suspend, revoke, or refuse to renew the licenses of such offending party or parties; or
(2)
Impose a penalty of not more than $5,000.00 for each and every act in violation of this Code section by said party or parties.
(c)
Before the Commissioner shall take any action as provided in subsection (b) of this Code section, written notice shall be provided to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation and fixing a time and place, at least ten days thereafter, when a hearing on the matter shall be held. After such hearing, or upon failure of the accused to appear at such hearing, the Commissioner, if he shall find such violation, shall impose such of the penalties under subsection (b) of this Code section as he deems advisable.
(d)
When the Commissioner shall take action in any or all of the ways set out in subsection (b) of this Code section, the party aggrieved may appeal from said action to the superior court.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-34 - Proof of claims; late filing

(a)
Proof of all claims shall be filed with the liquidator in the form required by Code Section
33-37-35
on or before the last day for filing specified in the notice required under Code Section
33-37-21
, except that proof of claims for cash surrender values or other investment values in life insurance and annuities need not be filed unless the liquidator expressly so requires.
(b)
The liquidator may permit a claimant making a late filing to share in distributions, whether past or future, as if he were not late, to the extent that any such payment will not prejudice the orderly administration of the liquidation, under the following circumstances:
(1)
The existence of the claim was not known to the claimant and that he filed his claim as promptly thereafter as reasonably possible after learning of it;
(2)
A transfer to a creditor was avoided under Code Sections
33-37-25
through
33-37-27
or was voluntarily surrendered under Code Section
33-37-28
, and that the filing satisfies the conditions of Code Section
33-37-28
; and
(3)
The valuation under Code Section
33-37-40
of security held by a secured creditor shows a deficiency, which is filed within 30 days after the valuation.
(c)
The liquidator shall permit late filing claims to share in distributions, whether past or future, as if they were not late, if such claims are claims of a guaranty association or foreign guaranty association for reimbursement of covered claims paid or expenses incurred, or both, subsequent to the last day for filing where such payments were made and expenses incurred as provided by law.
(d)
The liquidator may consider any claim filed late which is not covered by subsection (b) of this Code section and permit it to receive distributions which are subsequently declared on any claims of the same or lower priority if the payment does not prejudice the orderly administration of the liquidation. The late-filing claimant shall receive, at each distribution, the same percentage of the amount allowed on his claim as is then being paid to claimants of any lower priority. This shall continue until his claim has been paid in full.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-35 - Contents of proof of claim; effect of judgment or order within four months of, or after, filing petition for liquidation

(a)
Proof of claim shall consist of a statement signed by the claimant that includes all of the following that are applicable:
(1)
The particulars of the claim including the consideration given for it;
(2)
The identity and amount of the security on the claim;
(3)
The payments made on the debt, if any;
(4)
That the sum claimed is justly owing and that there is no setoff, counterclaim, or defense to the claim;
(5)
Any right of priority of payment or other specific right asserted by the claimants;
(6)
A copy of the written instrument which is the foundation of the claim; and
(7)
The name and address of the claimant and the attorney who represents him, if any.
(b)
No claim need be considered or allowed if it does not contain all the information in subsection (a) of this Code section which may be applicable. The liquidator may require that a prescribed form be used, and may require that other information and documents be included.
(c)
At any time the liquidator may request the claimant to present information or evidence supplementary to that required under subsection (a) of this Code section and may take testimony under oath, require production of affidavits or depositions, or otherwise obtain additional information or evidence.
(d)
No judgment or order against an insured or the insurer entered after the date of filing of a successful petition for liquidation, and no judgment or order against an insured or the insurer entered at any time by default or by collusion need be considered as evidence of liability or of quantum of damages. No judgment or order against an insured or the insurer entered within four months before the filing of the petition need be considered as evidence of liability or of the quantum of damages.
(e)
All claims of a guaranty association or foreign guaranty association shall be in such form and contain such substantiation as may be agreed to by the association and the liquidator.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-36 - Third-party contingent claim; claims due in future; claims under employment contracts

(a)
The claim of a third party which is contingent only on his first obtaining a judgment against the insured shall be considered and allowed as if there were no such contingency.
(b)
A claim may be allowed, even if contingent, if it is filed in accordance with Code Section
33-37-34
. It may be allowed and may participate in all distributions declared after it is filed to the extent that it does not prejudice the orderly administration of the liquidation.
(c)
Claims that are due except for the passage of time shall be treated as absolute claims are treated, except that such claims may be discounted at the legal rate of interest.
(d)
Claims made under employment contracts by directors, principal officers, or persons in fact performing similar functions or having similar powers are limited to payment for services rendered prior to the issuance of any order of rehabilitation or liquidation under Code Section
33-37-12
or
33-37-17
.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-37 - Third-party claim against insured

(a)
Whenever any third party asserts a cause of action against an insured of an insurer in liquidation, the third party may file a claim with the liquidator.
(b)
Whether or not the third party files a claim, the insured may file a claim on his own behalf in the liquidation. If the insured fails to file a claim by the date for filing claims specified in the order of liquidation or within 60 days after mailing of the notice required by Code Section
33-37-21
, whichever is later, he is an unexcused late filer.
(c)
The liquidator shall make his recommendations to the court under Code Section
33-37-41
for the allowance of an insured's claim under subsection (b) of this Code section after consideration of the probable outcome of any pending action against the insured on which the claim is based, the probable damages recoverable in the action and the probable costs and expenses of defense. After allowance by the court, the liquidator shall withhold any dividends payable on the claim pending the outcome of litigation and negotiation with the insured. Whenever it seems appropriate, he shall reconsider the claim on the basis of additional information and amend his recommendations to the court. The insured shall be afforded the same notice and opportunity to be heard on all changes in the recommendation as in its initial determination. The court may amend its allowance as it thinks appropriate. As claims against the insured are settled or barred, the insured shall be paid from the amount withheld the same percentage dividend as was paid on other claims of like property based on the lesser of the amount actually recovered from the insured by action or paid by agreement plus the reasonable costs and expense of defense or the amount allowed on the claims by the court. After all claims are settled or barred, any sum remaining from the amount withheld shall revert to the undistributed assets of the insurer. Delay in final payment under this subsection shall not be a reason for unreasonable delay of final distribution and discharge of the liquidator.
(d)
If several claims founded upon one policy are filed, whether by third parties or as claims by the insured under this Code section, and the aggregate allowed amount of the claims to which the same limit of liability in the policy is applicable exceeds that limit, each claim as allowed shall be reduced in the same proportion so that the total equals the policy limit. Claims by the insured shall be evaluated as in subsection (c) of this Code section. If any insured's claim is subsequently reduced under subsection (c) of this Code section, the amount thus freed shall be apportioned ratably among the claims which have been reduced under this subsection.
(e)
No claim may be presented under this Code section if it is or may be covered by any guaranty association or foreign guaranty association.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-38 - Procedure when claim denied

(a)
When a claim is denied in whole or in part by the liquidator, written notice of the determination shall be given to the claimant or his attorney by first-class mail at the address shown in the proof of claim. Within 60 days from the mailing of the notice, the claimant may file his objections with the liquidator. If no such filing is made, the claimant may not further object to the determination.
(b)
Whenever objections are filed with the liquidator and the liquidator does not alter his denial of the claim as a result of the objections, the liquidator shall ask the court for a hearing as soon as practicable and give notice of the hearing by first-class mail to the claimant or his attorney and to any other persons directly affected, not less than ten nor more than 30 days before the date of the hearing. The matter may be heard by the court or by a court appointed referee who shall submit findings of fact along with his recommendation.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-39 - When third person subrogated to rights of creditor

Whenever a creditor whose claim against an insurer is secured, in whole or in part, by the undertaking of another person fails to prove and file that claim, the other person may do so in the creditor's name, and shall be subrogated to the rights of the creditor, whether the claim has been filed by the creditor or by the other person in the creditor's name, to the extent that he discharges the undertaking. In the absence of an agreement with the creditor to the contrary, the other person shall not be entitled to any distribution; however, until the amount paid to the creditor on the undertaking plus the distributions paid on the claim from the insurer's estate to the creditor equals the amount of the entire claim of the creditor. Any excess received by the creditor shall be held by him in trust for such other person. The term "other person," as used in this Code section, is not intended to apply to a guaranty association or foreign guaranty association.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-40 - Determining value of security held by secured creditor

(a)
The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct:
(1)
By converting the same into money according to the terms of the agreement pursuant to which the security was delivered to such creditors; or
(2)
By agreement, arbitration, compromise, or litigation between the creditor and the liquidator.
(b)
The determination shall be under the supervision and control of the court with due regard for the recommendation of the liquidator. The amount so determined shall be credited upon the secured claim, and any deficiency shall be treated as an unsecured claim. If the claimant shall surrender his security to the liquidator, the entire claim shall be allowed as if unsecured.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-42 - Authority of liquidator to compound, compromise, or negotiate claims; report to court

(a)
The liquidator shall review all claims duly filed in the liquidation and shall make such further investigation as he shall deem necessary. He may compound, compromise, or in any other manner negotiate the amount for which claims will be recommended to the court except where the liquidator is required by law to accept claims as settled by any person or organization, including any guaranty association or foreign guaranty association. Unresolved disputes shall be determined under Code Section
33-37-38
. As soon as practicable, he shall present to the court a report of the claims against the insurer with his recommendations. The report shall include the name and address of each claimant and the amount of the claim finally recommended, if any. If the insurer has issued annuities or life insurance policies, the liquidator shall report the persons to whom, according to the records of the insurer, amounts are owed as cash surrender values or other investment value and the amounts owed.
(b)
The court may approve, disapprove, or modify the report on claims by the liquidator. Such reports as are not modified by the court within a period of 60 days following submission by the liquidator shall be treated by the liquidator as allowed claims subject thereafter to later modification or to rulings made by the court pursuant to Code Section
33-37-38
. No claim under a policy of insurance shall be allowed for an amount in excess of the applicable policy limits.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-43 - Payment of distributions

Under the direction of the court, the liquidator shall pay distributions in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the liquidation and the protection of unliquidated and undetermined claims, including third-party claims. Distribution of assets in kind may be made at valuations set by agreement between the liquidator and the creditor and approved by the court.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-44 - Disposition of unclaimed funds subject to distribution

(a)
All unclaimed funds subject to distribution remaining in the liquidator's hands when he is ready to apply to the court for discharge, including the amount distributable to any creditor, shareholder, member, or other person who is unknown or cannot be found shall be maintained by the Commissioner and shall be paid without interest except in accordance with Code Section
33-37-41
to the person entitled thereto or his legal representative upon proof satisfactory to the Commissioner of his right thereto. Any amount on deposit not claimed within six years from the discharge of the liquidator shall be deemed to have been abandoned and shall be escheated without formal escheat proceedings and be deposited in the general fund of the state.
(b)
All funds withheld under Code Section
33-37-36
and not distributed shall upon discharge of the liquidator be maintained by the Commissioner and paid by him in accordance with Code Section
33-37-41
. Any sums remaining which under Code Section
33-37-41
would revert to the undistributed assets of the insurer shall be transferred to the general fund of the state under subsection (a) of this Code section, unless the Commissioner in his discretion petitions the court to reopen the liquidation under Code Section
33-37-46
.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-45 - Liquidator's application for discharge

(a)
When all assets justifying the expense of collection and distribution have been collected and distributed under this chapter, the liquidator shall apply to the court for discharge. The court may grant the discharge and make any other orders, including an order to transfer any remaining funds that are uneconomic to distribute as may be deemed appropriate.
(b)
Any other person may apply to the court at any time for an order under subsection (a) of this Code section. If the application is denied, the applicant shall pay the costs and expenses of the liquidator in resisting the application, including a reasonable attorney's fee.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-46 - Reopening liquidation proceedings

After the liquidation proceeding has been terminated and the liquidator discharged, the Commissioner or other interested party may at any time petition the superior court to reopen the proceedings for good cause, including the discovery of additional assets. If the court is satisfied that there is justification for reopening, it shall so order.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-47 - Retention or destruction of records

Whenever it shall appear to the Commissioner that the records of any insurer in process of liquidation or completely liquidated are no longer useful, he may recommend to the court and the court shall direct what records should be retained for future reference and what should be destroyed.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 3 - PROCEDURE FOR REHABILITATION (§§ 33-37-11 — 33-37-48) › Section 33-37-48 - Receivership audits

The superior court may, as it deems desirable, cause audits to be made of the books of the Commissioner relating to any receivership established under this chapter, and a report of each audit shall be filed with the Commissioner and with the court. The books, records, and other documents of the receivership shall be made available to the auditor at any time without notice. The expense of each audit shall be considered a cost of administration of the receivership.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 37 - INSURERS REHABILITATION AND LIQUIDATION (§§ 33-37-1 — 33-37-58) › Article 4 - LIQUIDATION PROCEEDINGS (§§ 33-37-49 — 33-37-58) › Section 33-37-49 - Commissioner appointed as conservator of alien or foreign insurer's property; grounds

(a)
If a domiciliary liquidator has not been appointed, the Commissioner may apply to the superior court by verified petition for an order directing him to act as conservator to conserve the property of an alien insurer not domiciled in this state or a foreign insurer on any one or more of the following grounds:
(1)
Any of the grounds provided in Code Section
33-37-11
;
(2)
That any of its property has been sequestered by official action in its domiciliary state or in any other state;
(3)
That enough of its property has been sequestered in a foreign country to give reasonable cause to fear that the insurer is or may become insolvent; or
(4)
(A)
That its certificate of authority to do business in this state has been revoked or that none was ever issued; and
(B)
That there are residents of this state with outstanding claims or outstanding policies.
(b)
When an order is sought under subsection (a) of this Code section, the court shall cause the insurer to be given such notice and time to respond thereto as is reasonable under the circumstances.
(c)
The court may issue the order in whatever terms it shall deem appropriate. The filing or recording of the order with the clerk of superior court of the county in which the principal business of the company is located shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with the clerk would have imparted.
(d)
The conservator may at any time petition for and the court may grant an order under Code Section
33-37-50
to liquidate assets of a foreign or alien insurer under conservation or, if appropriate, for an order under Code Section
33-37-52
to be appointed ancillary receiver.
(e)
The conservator may at any time petition the court for an order terminating conservation of an insurer. If the court finds that the conservation is no longer necessary, it shall order that the insurer be restored to possession of its property and the control of its business. The court may also make such finding and issue such order at any time upon motion of any interested party but, if such motion is denied, all costs shall be assessed against such party.