Current through Rules and Regulations filed through March 20, 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.
