Current through Rules and Regulations filed through September 23, 2024
(1) No limited purpose subsidiary shall do any reinsurance business in this state unless it first obtains from the Commissioner a certificate of authority.
(2) Before receiving a certificate of authority, a limited purpose subsidiary shall do all of the following:
(a) File with the Commissioner a copy of its plan of operation.
(b) File with the Commissioner an affidavit of its president- or chief financial officer that includes all of the following statements, to the best of such person's knowledge and belief, after reasonable inquiry:
1. The proposed organization and operation of the limited purpose subsidiary shall comply with all provisions of O.C.G.A. §§
33-14-100et seq. and this Regulation Chapter.
2. The limited purpose subsidiary's investment policy specifies guidelines as to the quality, maturity, and diversification of investments and other specifications, including investment strategies intended to assure that the investments and investment practices are appropriate for the business conducted by the limited purpose subsidiary, its liquidity needs, and its capital and surplus.
3. Any reinsurance contract and any arrangement for securing the limited purpose subsidiary's obligations under such reinsurance contract including, but not limited to, any agreements or other documentation to implement such arrangement, comply with the provisions of O.C.G.A. §§
33-14-100et seq. and this Regulation Chapter.
(c) File with the Commissioner an opinion of legal counsel, in a form acceptable to the Commissioner, that the offer and sale of any limited purpose subsidiary securities comply with all applicable registration requirements or applicable exemptions from or exceptions to such requirements of the federal securities laws and that the offer and sale of securities by the limited purpose subsidiary itself comply with all registration requirements or applicable exemptions from or exceptions to such requirements of the securities laws of this state. Such opinions shall not be required as part of the application if the limited purpose subsidiary includes a specific statement in its plan of operation that such opinions will be provided to the Commissioner in advance of the offer or sale of any limited purpose subsidiary securities.
(d) Agree to pay the reasonable expenses and costs incurred incident to an examination of the limited purpose subsidiary's application by a qualified third party selected by the Commissioner.
(e) Submit any other statements or documents required by the Commissioner to evaluate the limited purpose subsidiary's application for a certificate of authority.
(3) In the event of any material change in any item required in 120-2-100-.06(2), the limited purpose subsidiary shall notify the Commissioner at least 30 days prior to the change and submit to the Commissioner for approval any revised documents, opinions, or certifications.
(4) The Commissioner may grant a certificate of authority to a limited purpose subsidiary, which shall be valid through the next June 1 following the date of initial issuance and which may be renewed annually thereafter, authorizing the limited purpose subsidiary to transact reinsurance business as a limited purpose subsidiary in this state upon a finding that:
(a) The proposed plan of operation provides for a viable operation;
(b) The terms of any reinsurance contract and related transactions comply with O.C.G.A. §§
33-14-100et seq. and this Regulation Chapter and all applicable insurance laws and regulations; and
(c) The proposed plan of operation is not hazardous to the organizing domestic reinsurer.
(5) In conjunction with the issuance of a certificate of authority to a limited purpose subsidiary, the Commissioner may issue an order that includes any provisions, terms, and conditions regarding the organization, licensing, and operation of the limited purpose subsidiary that the Commissioner deems appropriate and that are not inconsistent with the provisions of O.C.G.A. §§
33-14-100et seq. and this Regulation Chapter.
(6) A limited purpose subsidiary issued a certificate of authority may reinsure only risks of an organizing domestic reinsurer. A limited purpose subsidiary shall not otherwise engage in the business of insurance or reinsurance. A limited purpose subsidiary may purchase reinsurance to cede all or a portion of its risks subject to the prior approval of the Commissioner.
O.C.G.A. §§
33-2-9, 33-14-100et seq.
