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 120-2-1 - ORGANIZATION › Rule 120-2-1-.04 - Regulatory Services Section

Current through Rules and Regulations filed through June 27, 2024
(1) The Regulatory Services Section provides
				insurance company regulatory oversight and related functions. It shall:
(a) Grant or deny applications for
				certificates of authority. Form GID-1 entitled 'Instructions for Filing an
				Application for Original Certificate of Authority.' sets forth in detail the
				filing requirements, information, and instructions for the filing of
				applications for original certificates of authority to transact insurance
				business in Georgia.
(b) Approve of
				disapprove all petitions filed with the Secretary of State for organizing
				domestic insurers. All such petitions are reviewed for the purpose of
				determining if petitioner's charter will enable petitioner to comply fully with
				the insurance laws. Such petition must be passed upon within forty-five (45)
				days of its submission to this section.
(c) Renew certificates of authority. Form
				GID-9 contains the instructions for reviewing certificates of authority.
				Certificates of authority expire annually on June 30.
(d) Determine when an insurer should be cited
				to show cause why its certificate of authority should not be suspended or
				revoked. The section may determine when a citation shall issue if the solvency
				of an insurer is in doubt, policyholder treatment is consistently less than
				fair and equitable, any false statement or misrepresentation is knowingly or
				willfully filed with the section that the insurer has engaged in any unfair
				trade practice, or for other violations of law.
(e) Recommend to the Commissioner when court
				action should be taken.
1. The section may
				recommend court proceedings when a citation has been ignored or
				defied.
2. Whenever under the laws
				of this State a receiver is to be appointed in delinquency proceedings for a
				domestic insurer the Commissioner should be appointed receiver; the
				Commissioner should be appointed ancillary receiver for foreign or alien
				insurers.
(f) Pass upon
				eligibility, soundness, and the amount of securities to be deposited by an
				insurer to qualify for a certificate of authority.
1. Eligibility and soundness shall be
				determined by the investment laws of this State.
2. The amount is determined by the security
				having both par and market value of not less than the amount required by
				statute plus a reasonable margin for market fluctuation.
(g) Determine when an insurer may be
				permitted to withdraw its securities.
1. Any
				deposit made in this state under the provisions of the Georgia Insurance Code
				shall be released:
(I) to the insurer upon
				extinguishment of all liability of the insurer for the security of which the
				deposit it held;
(II) to the
				insurer to the extent such deposit is in excess of the amount required;
				or
(III) upon proper order of a
				court of competent jurisdiction, to the receiver, conservator, rehabilitator,
				or liquidator of the insurer, or to any other properly designated official or
				officials who succeed to the management and control of the insurer's
				assets.
2. No such
				release of deposited funds shall be made except upon application to and the
				written order of the Commissioner. The Commissioner shall have no liability for
				any such release of any such deposit or part thereof so made by him in good
				faith.
(h) Review and
				recommend action to be taken upon all proposals for merger where a domestic
				insurer is a party. All proposals for merger are reviewed by this section for
				the purpose of determining if the resulting entity will be financially solvent
				and able to meet is obligations; that its capital structure and surplus are
				such as to comply with the Georgia Insurance Code; and that its management is
				familiar with the insurance industry and the management has no history of any
				involvement in any unfair trade practices.