reglab/statecodes huggingface dataset:
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-1 - Short title

This chapter shall be known and may be cited as the "Georgia Insurers Insolvency Pool Act."
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-2 - Creation; accounts; responsibility; supervision and regulation

There is created a Georgia Insurers Insolvency Pool which shall consist of three accounts:
(1)
workers' compensation account;
(2)
automobile account; and
(3)
all other covered insurance account. The pool shall be responsible for the investigation, adjustment, compromise, settlement, and payment of covered claims; for the investigation, handling, and denial of noncovered claims; and for the management and investment of funds administered by the pool. The members of the pool shall be responsible for the payment of assessments levied pursuant to subsection (b) of Code Section
33-36-7
; for adherence to the rules of the plan approved pursuant to Code Section
33-36-6
; and for other obligations imposed by this chapter. The pool shall come under the immediate supervision of the Commissioner and shall be subject to the applicable provisions of the insurance laws of this state.
Amended by 2005 Ga. Laws 108,§ 11, eff. 7/1/2005.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-4 - Insurers Solvency Board

(a)
There shall be a board of trustees of the Georgia Insurers Insolvency Pool which shall be known as the Insurers Solvency Board and which shall consist of seven members. At all times, the board shall contain at least one member from a domestic insurer. The members of the board shall not be considered employees of the department. The members of the board shall be selected by the Commissioner. Each board member so selected shall represent a company licensed to do business in Georgia. Any member may be removed from office by the Commissioner when, in his or her judgment, the public interest may so require. Each member appointed shall serve for a term of three years and until his or her successor has been appointed and qualified and, in case of a vacancy for any reason in the office of any such member, the Commissioner shall appoint a member to fill the unexpired term of such vacant office.
(b)
In approving selections to the board, the Commissioner shall consider among other things whether all member insurers are fairly represented.
(c)
The actual expenses of the members of the board incurred in attending meetings shall be paid out of the assets of the insolvency pool, but members of the board shall not otherwise be compensated by the pool for their services. For the purpose of considering questions before it, the board shall have access to all the books, records, reports, and papers in the department, including all confidential communications; and the members of the board shall treat such communications as confidential.
Amended by 2005 Ga. Laws 108,§ 13, eff. 7/1/2005.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-5 - Insurers required to become members of pool

Every insurer authorized to write property or casualty insurance policies in this state shall be a member of the insolvency pool and shall be liable for assessments pursuant to Code Section
33-36-7
and shall also be responsible for the other obligations imposed pursuant to this chapter.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-7.1 - Surcharge on premiums to recoup assessments; disclosure to insureds; excess surcharges, exception where the expense of collection would exceed the amount of the surcharge

(a)
The plan adopted pursuant to Code Section
33-36-6
shall contain provisions whereby each member insurer is required to recoup over the year following the year of the assessment a sum calculated to recoup the assessments paid by the member insurer under this chapter by way of a surcharge on premiums charged for insurance policies to which this chapter applies. Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax or agents' commission.
(b)
The amount of any surcharge shall be separately stated on either a billing or policy declaration sent to an insured. Member insurers who collect surcharges in excess of assessments paid pursuant to Code Section
33-36-7
for an insolvent insurer shall remit the excess to the pool as an additional assessment within 30 days after the pool has determined the amount of the excess recoupment and given notice to the member of that amount. The excess shall be applied to reduce future assessment charges in the appropriate category.
(c)
The plan of operation may permit a member insurer to omit collection of the surcharge from its insureds when the expense of collecting the surcharge would exceed the amount of the surcharge. However, nothing in this Code section shall relieve the member insurer of its obligation to recoup the amount of surcharge otherwise collectable.
Amended by 2019 Ga. Laws 140,§ 129, eff. 7/1/2019.
Amended by 2013 Ga. Laws 33,§ 33, eff. 4/24/2013.
Amended by 2005 Ga. Laws 108,§ 16, eff. 7/1/2005.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-8 - Issuance by Commissioner of notice of judicial determination of insolvency of insurer; requirement of notification of insureds by agents of insurer; publication of notice

Upon the determination of a court of competent jurisdiction of the state of domicile of an insurer that the insurer is insolvent, the Commissioner of this state shall promptly give notice of the insurer's insolvency by first-class mail to all persons known or reasonably expected to have or be interested in claims against the insurer at such person's last known address, all insureds of the insolvent insurer known to the Commissioner at such insured's last known address, and all insurers subject to this chapter. The Commissioner may also require each agent of the insolvent insurer to give prompt written notice by first-class mail at the insured's last known address to each insured of the insolvent insurer for whom he was agent of record. Notice shall also be given by publication in a newspaper of general circulation published in the county where the insurer had its principal office not less than once per week for four weeks and by publication elsewhere in this state as the court may direct.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-9 - Coverage afforded by insolvent insurers to become obligation of pool; investigation and settlement of claims by pool

In the event an insurer is ordered to be liquidated, the coverage afforded by property and casualty insurance policies issued by such insurer shall, with respect to covered claims, become the obligation of the pool for a period of 30 days from the date of such determination or until policy expiration date if less than said 30 days or until the policy has been replaced by the insurer within said 30 days. The pool shall be deemed the insurer only to the extent of its obligation on the covered claims and to such extent, subject to the limitations provided in this chapter, shall have all rights, duties, and obligations of the insolvent insurer as if the insurer had not become insolvent, including, but not limited to, the right to pursue and retain salvage and subrogation recoverable on paid covered claim obligations. The pool shall not be deemed the insolvent insurer for any purpose relating to the issue of whether the pool is amenable to the personal jurisdiction of the courts of any state. The pool is authorized to investigate, adjust, compromise, and settle covered claims or to investigate, handle, and deny noncovered claims. The pool shall have the authority, upon approval of the Commissioner, to borrow funds necessary to effect the purposes of this chapter. The pool shall have the authority to establish procedures for requesting financial information from insureds on a confidential basis for purposes of applying Code sections concerning their net worth, subject to such information being shared with any other association similar to the pool and the liquidator for the insolvent company on the same confidential basis. If the insured refuses to provide the requested financial information and an auditor's certification of the same where requested and available, the pool may deem the net worth of the insured, in the instance of a first-party claim, to be in excess of $10 million at the relevant time or, in the event of a third-party claim, to be in excess of $25 million at the relevant time. In any lawsuit contesting the applicability of subparagraph (G) of paragraph (4) of Code Section
33-36-3
or subsection (d) of Code Section
33-36-14
where the insured has declined to provide financial information under the procedure provided pursuant to this Code section, the insured shall bear the burden of proof concerning its net worth at the relevant time. If the insured fails to prove that its net worth at the relevant time was less than the applicable amount, the court shall award the pool its full costs, expenses, and reasonable attorney's fees in contesting the claim.
Amended by 2013 Ga. Laws 33,§ 33, eff. 4/24/2013.
Amended by 2005 Ga. Laws 108,§ 17, eff. 7/1/2005.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-10 - Recovery under chapter of covered claims recoverable under insolvency funds of other states

(a)
It is not the purpose of this chapter to provide or permit duplicate recoveries of covered claims under this chapter and an insolvency fund or its equivalent of any other state. In the construction and application of this chapter with respect to a covered claim which may be recoverable under this chapter and under an insolvency fund or its equivalent in another state, the sole recovery:
(1)
with respect to a workers' compensation claim, shall be under the insolvency fund or its equivalent of the state of residence of the claimant;
(2)
with respect to a first-party claim of an insured for damage to or destruction of property with a permanent location, shall be under the insolvency fund or its equivalent of the state where the property is permanently situated; and
(3)
with respect to any other covered claim, shall be under the insolvency fund or its equivalent of the state of residence of the insured.
(b)
Any recovery obtained from the pool pursuant to this chapter shall be reduced by those amounts recovered in any other state from a similar or equivalent insolvency fund in such state when the recovery was obtained by the same claimant for the same claim filed against the pool in this state.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-11 - Limitation for filing claims; claims filed after final date set by court; default judgments

(a)
Notwithstanding any other provisions of this chapter, except as provided for in Code Section
33-36-20
, a covered claim shall not include a claim filed with the pool after the earlier of (1) 18 months after the date of the order of liquidation, or (2) the final date set by the court for the filing of claims against the liquidator or receiver of an insolvent insurer and shall not include any claim filed with the pool or a liquidator for protection afforded under the insured's policy for incurred but not reported losses.
(b)
The pool may not be found in default. No default judgments may be entered against the pool, the insolvent insurer, or the insured of the insolvent insurer after the instigation of an insolvency proceeding prior to an order of liquidation, nor during the pendency of insolvency proceedings, nor during a 120 day stay following an order of liquidation.
(c)
In no instance may a finding of default or the entry of a default judgment against an insurer be applicable or enforceable against the pool or the insured of the insolvent insurer.
Amended by 2013 Ga. Laws 33,§ 33, eff. 4/24/2013.
Amended by 2010 Ga. Laws 666,§ 1, eff. 6/4/2010.
Amended by 2005 Ga. Laws 108,§ 18, eff. 7/1/2005.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-12 - Powers and duties of Commissioner as to collection of assessments; judicial review

The Commissioner shall bring an action for and recover, on behalf of the pool, any assessment not paid when due. He may, after notice and hearing, revoke the certificate of authority to transact business in this state of an insurer who is a member of the pool which fails to pay an assessment when due as provided in this chapter and after demand having been made or which otherwise fails to comply with the plan as approved pursuant to Code Section
33-36-6
. Any action taken by the Commissioner shall be subject to judicial review as provided in Code Sections
33-2-26
through
33-2-28
.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-13 - Allowance of claims by receivers, liquidators, or statutory successors; appointment of pool as insurer's agent

With respect to insolvent insurers incorporated in this state, the receiver, liquidator, or statutory successor shall allow as a proper claim on the assets of the insolvent insurer amounts paid under this chapter by or on behalf of the pool or paid by an insolvency fund or its equivalent in another state on or with respect to covered claims, notwithstanding provisions to the contrary in any statute of this state relating to the rights and duties of such receiver, liquidator, or statutory successor. As a condition of an insurer doing business in this state, all property and casualty insurance policies issued or renewed shall be deemed to provide that the insurer appoints the pool as its agent with respect to investigation, adjustment, compromise, and settlement of covered claims and to reimburse the pool for any payment made under the terms of this chapter, and that such appointment and obligation shall be binding on any receiver, liquidator, or statutory successor appointed to liquidate or wind up its affairs.
Amended by 2005 Ga. Laws 108,§ 19, eff. 7/1/2005.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-14 - Exhaustion of rights by claimants against insolvent insurers prior to recovery; recovery of payment to claimants in excess of amounts authorized; reduction of liability of insured; recovery of amounts paid on behalf of certain persons

(a)
Except as provided for in Code Section
33-36-20
, any person having a claim against a policy or an insured under a policy issued by an insolvent insurer, which claim is a covered claim and is also a claim within the coverage of any policy issued by a solvent insurer, shall be required to exhaust first his or her rights under such policy issued by the solvent insurer. The policy of the solvent insurer shall be treated as primary coverage and the policy of the insolvent insurer shall be treated as secondary coverage and his or her rights to recover such claim under this chapter shall be reduced by any amounts received from the solvent insurers.
(b)
Any amount paid a claimant in excess of the amount authorized by this chapter may be recovered by an action brought by or on behalf of the pool.
(c)
To the extent that the pool's obligation is reduced by the application of this Code section, the liability of the person insured by the insolvent insurer's policy for the claim shall be reduced in the same amount.
(d)
Except as provided for in Code Section
33-36-20
, the pool shall have the right to recover from the following persons all amounts paid by the pool on behalf of such person, whether for indemnity or defense or otherwise:
(1)
Any insured whose net worth on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer exceeds $25 million, provided that an insured's net worth on such date shall be deemed to include the aggregate net worth of the insured and all of its subsidiaries and affiliates as calculated on a consolidated basis; and
(2)
Any person who is an affiliate of the insolvent insurer.
Amended by 2012 Ga. Laws 776,§ 9, eff. 7/1/2012.
Amended by 2010 Ga. Laws 666,§ 2, eff. 6/4/2010.
Amended by 2005 Ga. Laws 108,§ 20, eff. 7/1/2005.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-14.1 - Recommendations and report by the board of trustees

(a)
To aid in the detection and prevention of insurer insolvencies:
(1)
The board of trustees may, upon majority vote, make recommendations to the Commissioner for the detection and prevention of insurer insolvencies;
(2)
The board of trustees may, upon majority vote, make recommendations to the Commissioner on matters generally related to improving or enhancing regulation for solvency; and
(3)
The board of trustees may, at the conclusion of any domestic insurer insolvency in which the pool was obligated to pay covered claims, prepare a report on the history and causes of such insolvency based on the information available to the pool and submit such report to the Commissioner.
(b)
Reports and recommendations made pursuant to this Code section shall not be considered public documents.
Amended by 2005 Ga. Laws 108,§ 21, eff. 7/1/2005.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-15 - Examination of pool

The pool shall be deemed a company or insurer within the scope of Code Section
33-2-11
relating to examinations. Notwithstanding the provisions of Code Section
33-2-11
or this Code section, whether such examinations shall be conducted and the frequency of any such examinations shall be at the sole discretion of the Commissioner.
Amended by 2005 Ga. Laws 108,§ 22, eff. 7/1/2005.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-16 - Exemption from taxation of pool

The pool shall be exempt from all license fees, income, franchise, privilege, occupation, or other taxes levied or assessed by the state, any municipality, county, or other political subdivision of the state, except state, county, or municipal taxes upon the real or personal property of the pool, which shall be assessed and taxed in the same manner as real property and personal property of other nonexempt persons.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-16.1 - Immunity from liability for performance of powers and duties under this chapter

There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer, the pool or its agents or employees, the board of trustees, or any person serving as a representative of any member of the board of trustees for any action taken or any failure to act by them in the performance of their powers and duties under this chapter.
Added by 2005 Ga. Laws 108,§ 23, eff. 7/1/2005.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-17 - Termination of operation of pool as to particular kinds of insurance; proceeds upon termination of operation of pool; expiration of pool

(a)
The Commissioner shall by order terminate the operation of the insolvency pool as to any kind of insurance afforded by property or casualty insurance policies with respect to which he has found, after hearing, that there is in effect a statutory or voluntary plan which:
(1)
Is a permanent plan which is adequately funded or for which adequate funding is provided; and
(2)
Extends, or will extend to the Georgia policyholders and residents, protection and benefits with respect to insolvent insurers not substantially less favorable and effective to such policyholders and residents than the protection and benefits provided with respect to that kind of insurance under this chapter.
(b)
The Commissioner shall by the same order authorize discontinuance of future payments by insurers to the insolvency pool with respect to the same kinds of insurance, provided that assessments and payments shall continue as necessary to liquidate covered claims of insurers adjudged insolvent prior to the order and the related expenses not covered by the other plan.
(c)
In the event the operation of any account of the insolvency pool shall be so terminated as to all kinds of insurance otherwise within its scope, the pool as soon as possible after the termination shall distribute the balance of moneys and assets remaining in the account (after discharge of the functions of the pool with respect to prior insurer insolvencies not covered by such other plan, together with related expenses) to the insurers which are then writing in this state policies of the kinds of insurance covered by such account, and which had made payments into such account, pro rata upon the basis of the aggregate of the payments made by the respective insurers to the account during the period of five years preceding the date of the order. Upon completion of such distribution with respect to all of the accounts specified in Code Section
33-36-7
, this chapter shall be deemed to have expired.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-18 - Appeal to Commissioner; judicial review

Any action of the Insurers Solvency Board may be appealed to the Commissioner by any member insurer if such appeal is taken within 30 days of the action being appealed. Any final action or order of the Commissioner shall be subject to judicial review in a court of competent jurisdiction.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-19 - Advertisements, announcements, or statements using insolvency pool for purpose of sales

(a)
No person, including an insurer or agent or affiliate of an insurer, shall make, publish, disseminate, circulate, or place before the public or cause directly or indirectly to be made, published, disseminated, circulated, or placed before the public in any newspaper, magazine, or other publication; in the form of a notice, circular, pamphlet, letter, or poster; over any radio station or television station; or in any other way any advertisement, announcement, or statement which uses the existence of the pool for the purposes of sales, solicitation, or inducement to purchase any form of insurance covered by this chapter. This Code section shall not apply to the pool or any other entity which does not sell or solicit insurance.
(b)
Any person who violates subsection (a) of this Code section may, after notice and hearing and upon order of the Commissioner, be subject to one or both of the following:
(1)
A monetary penalty of not more than $1,000.00 for each act or violation, but not to exceed an aggregate penalty of $10,000.00; or
(2)
Suspension or revocation of his license or certificate of authority.
2023 CODE OF GEORGIA › Title 33 - INSURANCE (§§ 33-1-1 — 33-66-8) › Chapter 36 - GEORGIA INSURERS INSOLVENCY POOL (§§ 33-36-1 — 33-36-20) › Section 33-36-20 - Liability of pool to claimants and electing insureds in emergency circumstances; definitions; exceptions

(a)
It is the policy of this state to protect insureds and their claimants from liability as a result of the insolvency of insurers. In furtherance of this policy, it is the intent of the legislature, notwithstanding any provision of law to the contrary, that the Georgia Insurers Insolvency Pool shall be liable to claimants and electing insureds in emergency circumstances.
(b)
As used in this Code section, the term:
(1)
"Electing insured" means any insured under a workers' compensation insurance policy that is impacted by an emergency circumstance. Such term shall include but not be limited to governmental insureds and other insureds under a workers' compensation insurance policy impacted by an emergency circumstance whose net worth exceeds $25 million as of December 31 of the year preceding the filing of a claim.
(2)
"Emergency circumstance" means a circumstance in which an association or industrial insured captive insurance company, including such a captive company that subsequently was authorized to transact business pursuant to Chapter 3 of this title, that is issuing, or which has issued, workers' compensation insurance contracts and has been declared insolvent.
(3)
"Emergency claimant" means any third-party claimant, under a workers' compensation insurance policy, who is impacted by an emergency circumstance and whose employer has, by a court of competent jurisdiction, been declared bankrupt or insolvent.
(c)
Any electing insured whose net worth is less than $25 million as of December 31 of the year preceding the filing of a claim may be shielded from liability by the pool and have any workers' compensation claims filed against such electing insured covered by the pool, provided said electing insured pays $10,000.00 per claim to the insolvency pool prior to October 1, 2010. Any electing insured whose net worth exceeds $25 million as of December 31 of the year preceding the filing of a claim may be shielded from liability by the pool and have any workers' compensation claims filed against such electing insured covered by the pool, provided said electing insured pays $50,000.00 per claim to the insolvency pool prior to October 1, 2010. Claims of all emergency claimants shall be covered by the insolvency pool.
(d)
Claimants shall retain the right to pursue claims against any insured that is not an electing insured.
Added by 2010 Ga. Laws 666,§ 3, eff. 6/4/2010.
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 1 - GENERAL PROVISIONS (§§ 33-37-1 — 33-37-8.1) › Section 33-37-1 - Construction and purpose of chapter

(a)
This chapter shall be known and may be cited as the "Insurers Rehabilitation and Liquidation Act."
(b)
This chapter shall not be interpreted to limit the powers granted the Commissioner by other provisions of law.
(c)
This chapter shall be liberally construed to effect the purpose stated in subsection (d) of this Code section.
(d)
The purpose of this chapter is the protection of the interests of insureds, claimants, creditors, and the public generally, with minimum interference with the normal prerogatives of the owners and managers of insurers, through:
(1)
Early detection of any potentially dangerous condition in an insurer and prompt application of appropriate corrective measures;
(2)
Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry;
(3)
Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation;
(4)
Equitable apportionment of any unavoidable loss;
(5)
Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process and by extending the scope of personal jurisdiction over debtors of the insurer outside this state;
(6)
Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business; and
(7)
Providing for a comprehensive scheme for the rehabilitation and liquidation of insurance companies and those subject to this chapter as part of the regulation of the business of insurance, insurance industry, and insurers in this state. Proceedings in cases of insurer insolvency and delinquency are deemed an integral aspect of the business of insurance and are of vital public interest and concern.
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 1 - GENERAL PROVISIONS (§§ 33-37-1 — 33-37-8.1) › Section 33-37-2 - Applicability

The proceedings authorized by this chapter may be applied to:
(1)
All insurers who are doing or have done an insurance business in this state and against whom claims may arise from such business;
(2)
All insurers who purport to do an insurance business in this state;
(3)
All insurers who have insureds resident in this state;
(4)
All other persons organized or in the process of organizing with the intent to do an insurance business in this state;
(5)
All nonprofit service plans and all fraternal benefit societies;
(6)
All title insurance companies; and
(7)
All prepaid health care delivery plans, health care plans, and health maintenance organizations.
Amended by 2019 Ga. Laws 140,§ 130, 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 1 - GENERAL PROVISIONS (§§ 33-37-1 — 33-37-8.1) › Section 33-37-4 - Jurisdiction; exclusiveness of remedy; venue; change of venue

(a)
No delinquency proceeding shall be commenced under this chapter by anyone other than the Commissioner, and no court shall have jurisdiction to entertain, hear, or determine any proceeding commenced by any other person.
(b)
No court of this state shall have jurisdiction to entertain, hear, or determine any complaint praying for the dissolution, liquidation, rehabilitation, sequestration, conservation, or receivership of any insurer; or praying for an injunction or restraining order or other relief preliminary to, incidental to, or relating to such proceedings other than in accordance with this chapter.
(c)
In addition to other grounds for jurisdiction provided by the law of this state, a court of this state having jurisdiction of the subject matter has jurisdiction over a person served pursuant to Code Section
9-11-4
or other applicable provisions of law in an action brought by the receiver of a domestic insurer or an alien insurer domiciled in this state:
(1)
If the person served is an agent, broker, or other person who has at any time written policies of insurance for or has acted in any manner whatsoever on behalf of an insurer against which a delinquency proceeding has been instituted, in any action resulting from or incident to such a relationship with the insurer;
(2)
If the person served is a reinsurer who has at any time entered into a contract of reinsurance with an insurer against which a delinquency proceeding has been instituted or is an agent or broker of or for the reinsurer, in any action on or incident to the reinsurance contract;
(3)
If the person served is or has been an officer, director, manager, trustee, organizer, promoter, or other person in a position of comparable authority or influence over an insurer against which a delinquency proceeding has been instituted, in any action resulting from or incident to such a relationship with the insurer;
(4)
If the person served is or was at the time of the institution of the delinquency proceeding against the insurer holding assets in which the receiver claims an interest on behalf of the insurer, in any action concerning the assets; or
(5)
If the person served is obligated to the insurer in any way whatsoever, in any action on or incident to the obligation.
(d)
If the court on motion of any party finds that any action should as a matter of substantial justice be tried in a forum outside this state, the court may enter an appropriate order to stay further proceedings on the action in this state.
(e)
Any action authorized in this Code section shall be brought in the Superior Court of Fulton County.
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 1 - GENERAL PROVISIONS (§§ 33-37-1 — 33-37-8.1) › Section 33-37-6 - Cooperation with Commissioner mandated; penalties for failure to cooperate

(a)
Any officer, manager, director, trustee, owner, employee, or agent of any insurer or any other persons with authority over or in charge of any segment of the insurer's affairs shall cooperate with the Commissioner in any proceeding under this chapter or any investigation preliminary to the proceeding. The term "person" as used in this Code section shall include any person who exercises control directly or indirectly over activities of the insurer through any holding company or other affiliate of the insurer. "To cooperate" shall include, but shall not be limited to, the following:
(1)
To reply promptly in writing to any inquiry from the Commissioner requesting such a reply; and
(2)
To make available to the Commissioner any books, accounts, documents, or other records or information or property of or pertaining to the insurer and in his possession, custody, or control.
(b)
No person shall obstruct or interfere with the Commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto.
(c)
This Code section shall not be construed to abridge otherwise existing legal rights, including the right to resist a petition for liquidation or other delinquency proceedings or other orders.
(d)
Any person included within subsection (a) of this Code section who fails to cooperate with the Commissioner, or any person who obstructs or interferes with the Commissioner in the conduct of any delinquency proceeding or any investigation preliminary or incidental thereto, or who violates any order the Commissioner issued validly under this chapter may:
(1)
Be sentenced to pay a fine not exceeding $10,000.00 or to undergo imprisonment for a term of not more than one year, or both; or
(2)
After a hearing, be subject to the imposition by the Commissioner of a civil penalty not to exceed $10,000.00 and shall be subject further to the revocation or suspension of any insurance licenses issued 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 1 - GENERAL PROVISIONS (§§ 33-37-1 — 33-37-8.1) › Section 33-37-7 - [Reserved] Effect of enactment of chapter on pending proceedings

Amended by 2019 Ga. Laws 140,§ 132, 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 1 - GENERAL PROVISIONS (§§ 33-37-1 — 33-37-8.1) › Section 33-37-8 - Prohibition against release from proceedings or continuing business

No insurer that is subject to any delinquency proceedings, whether formal or informal, administrative or judicial, shall:
(1)
Be released from such proceeding, unless such proceeding is converted into a judicial rehabilitation or liquidation proceeding;
(2)
Be permitted to solicit or accept new business or request or accept the restoration of any suspended or revoked license or certificate of authority;
(3)
Be returned to the control of its shareholders or private management; or
(4)
Have any of its assets returned to the control of its shareholders or private management
until all payments of or on account of the insurer's contractual obligations by all guaranty associations, along with all expenses thereof and interest on all such payments and expenses, shall have been repaid to the guaranty associations or a plan of repayment by the insurer shall have been approved by the 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 2 - PROCEDURE FOR DELINQUENCY PROCEEDING (§§ 33-37-9 — 33-37-10) › Section 33-37-9 - Commencing formal delinquency proceeding; ex parte seizure order; hearing and review of order; notice

(a)
The Commissioner may file in the superior court of the county in which the insurer is domiciled or in the Superior Court of Fulton County a petition alleging, with respect to a domestic insurer:
(1)
That there exists any grounds that would justify a court order for a formal delinquency proceeding against an insurer under this chapter;
(2)
That the interests of policyholders, creditors, or the public will be endangered by delay; and
(3)
The contents of an order deemed necessary by the Commissioner.
(b)
Upon a filing under subsection (a) of this Code section, the court may issue forthwith, ex parte, and without a hearing the requested order which shall direct the Commissioner to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer and of the premises occupied by it for transaction of its business and until further order of the court, enjoin the insurer and its officers, managers, agents, and employees from disposition of its property and from the transaction of its business except with the written consent of the Commissioner.
(c)
The court shall specify in the order what its duration shall be which shall be such time as the court deems necessary for the Commissioner to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may from time to time hold such hearings as it deems desirable after such notice as it deems appropriate and may extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the Commissioner fails to commence a formal proceeding under this chapter after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this chapter shall ipso facto vacate the seizure order.
(d)
Entry of a seizure order under this Code section shall not constitute an anticipatory breach of any contract of the insurer.
(e)
An insurer subject to an ex parte order under this Code section may petition the court at any time after the issuance of such order for a hearing and review of the order. The court shall hold such a hearing and review not more than 15 days after the request. A hearing under this subsection may be held privately in chambers and it shall be so held if the insurer proceeded against so requests.
(f)
If, at any time after the issuance of such an order, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued 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 2 - PROCEDURE FOR DELINQUENCY PROCEEDING (§§ 33-37-9 — 33-37-10) › Section 33-37-10 - Confidentiality of proceedings

In all proceedings and judicial reviews thereof under Code Section
33-37-9
, all records of the insurer, other documents, and all Department of Insurance files and court records and papers, so far as they pertain to or are a part of the record of the proceedings, shall be and remain confidential except as is necessary to obtain compliance therewith, unless and until the court, after hearing arguments from the parties in chambers, shall order otherwise or unless the insurer requests that the matter be made public. Until such court order, all papers filed with the clerk of the superior court shall be held by him in a confidential file.
Amended by 2019 Ga. Laws 139,§ 1-93, 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 33-37-12 - Order to rehabilitate; Commissioner to be appointed as rehabilitator; effect of order

(a)
An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the Commissioner and his successors in office the rehabilitator and shall direct the rehabilitator forthwith to take possession of the assets of the insurer and to administer them under the general supervision of the court. The filing or recording of the order with the clerk of the superior court or recorder of deeds of the county in which the principal business of the company is conducted, or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that recorder of deeds would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator.
(b)
Any order issued under this Code section shall require accountings to the court by the rehabilitator. Accountings shall be at such intervals as the court specifies in its order, but no less frequently than semiannually. Each accounting shall include a report concerning the rehabilitator's opinion as to the likelihood that a plan under subsection (d) of Code Section
33-37-13
will be prepared by the rehabilitator and the timetable for doing so.
(c)
Entry of an order of rehabilitation shall not constitute an anticipatory breach of any contracts of the insurer nor shall it be grounds for retroactive revocation or retroactive cancellation of any contracts of the insurer, unless such revocation or cancellation is done by the rehabilitator pursuant to Code Section
33-37-13
.
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 33-37-14 - Effect of rehabilitation order on pending litigation; standing of guaranty association to participate in rehabilitation

(a)
Any court in this state before which any action or proceeding in which the insurer is a party, or is obligated to defend a party, is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for 90 days and such additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take such action respecting the pending litigation as he deems necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside this state and shall petition the courts having jurisdiction over that litigation for stays whenever necessary to protect the estate of the insurer.
(b)
No statute of limitations or defense of laches shall run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that 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 order of rehabilitation is entered or the petition is denied. The rehabilitator may, upon an order for rehabilitation, within one year or such other longer time as applicable law may permit, institute an action or proceeding on behalf 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.
(c)
Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if such association is or may become liable to act as a result of the rehabilitation.
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 33-37-15 - Petition for order of liquidation; defense; payment of costs and expenses; order terminating rehabilitation

(a)
Whenever the Commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public or would be futile the Commissioner may petition the superior court for an order of liquidation. A petition under this subsection shall have the same effect as a petition under Code Section
33-37-16
. The superior court shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer or such costs and other expenses of defense as justice may require.
(b)
The protection of the interests of insureds, claimants, and the public requires the timely performance of all insurance policy obligations. If the payment of policy obligations is suspended in substantial part for a period of six months at any time after the appointment of the rehabilitator and the rehabilitator has not filed an application for approval of a plan under subsection (d) of Code Section
33-37-13
, the rehabilitator shall petition the court for an order of liquidation on grounds of insolvency.
(c)
The rehabilitator may at any time petition the superior court for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of such costs and other expenses of such petition as justice may require. If the superior court finds that rehabilitation has been accomplished and that grounds for rehabilitation under Code Section
33-37-11
no longer exist, it shall order that the insurer be restored to possession of its property and the control of the business. The superior court may also make that finding and issue that order at any time upon its own motion.
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 33-37-16 - Grounds for order of liquidation

The Commissioner may petition the superior court for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis:
(1)
Of any ground for an order of rehabilitation as specified in Code Section
33-37-11
, whether or not there has been a prior order directing the rehabilitation of the insurer;
(2)
That the insurer is insolvent; or
(3)
That the insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors, or the public.