Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-79 - HEALTH PLAN PURCHASING COOPERATIVES › Rule 120-2-79-.05 - Health Plan Purchasing Cooperatives Surety Bond and Insurance

Current through Rules and Regulations filed through June 27, 2024
(1) At application
				and renewal every health plan purchasing cooperative shall file with the
				Commissioner a surety bond executed by a corporate surety insurer authorized to
				transact insurance in this state in favor of the Commissioner of Insurance of
				the State of Georgia, continuous in form and in an amount equal to at least ten
				percent of the amount of the funds handled or managed annually by the health
				plan purchasing cooperative, or if no funds were handled during the preceding
				year, ten percent of the amount of funds reasonably estimated to be handled
				during the current calendar year. In no event will the surety bond be less than
				$100,000.
(2) The bond shall inure
				to the benefit of any person damaged by any fraudulent act or conduct of the
				health plan purchasing cooperative and must be conditioned upon faithful
				accounting and application of all money coming into the health plan purchasing
				cooperative's possession in connection with its activities as a health plan
				purchasing cooperative.
(3) The
				bond remains in force until released by the Commissioner or canceled by the
				insurer. Without prejudice to any liability previously incurred, the insurer
				may cancel the bond upon advanced written notice to the health plan purchasing
				cooperative and by certified mail to the Commissioner (Attn: Regulatory
				Services Division). A health plan purchasing cooperative's certificate of
				authority shall be suspended if it does not file with the Commissioner a
				replacement bond before the date of cancellation of the previous bond. A
				replacement bond must meet all requirements of this section for the initial
				bond.
(4) Each health plan
				purchasing cooperative shall obtain and maintain surety bond coverage or other
				appropriate liability insurance, written by an insurer carrier authorized to
				transact insurance in this state, in an amount of at least $100,000. A copy of
				this policy must be filed with the Commissioner at application and
				renewal.
(5) Any policy written in
				accordance with paragraph (4) of this Rule shall be for a term of at least one
				year and shall contain provisions that:
(a)
				cancellation or termination of the policy is not effective except upon sixty
				(60) days written notice by registered or certified mail to the other party to
				the policy and to the Commissioner (Attn: Regulatory Services Division);
				and
(b) the policy is automatically
				renewable at the expiration of the policy period except upon sixty (60) days
				written notice by registered or certified mail by the party not renewing the
				policy to the other party to the policy and to the Commissioner (Attn:
				Regulatory Services Division).