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 120-2-100 - Limited Purpose Subsidiaries
Rule 120-2-100-.10 - Reports and Notifications

(1) A limited purpose subsidiary shall file on or before March 1 of each year a financial report of its business and affairs as of December 31 of the calendar year immediately preceding. Such report shall be filed on the life and accident and health blank adopted by the NAIC. The financial reports required by this rule shall be prepared in accordance with the NAIC's Annual Statement Instructions and the NAIC Accounting Practices and Procedures Manual unless otherwise prescribed by the Commissioner.

(2) A limited purpose subsidiary shall file quarterly financial reports on the life and accident and health blank adopted by the NAIC. Such reports shall be as of March 31, June 30 and September 30 and shall be due May 15, August 15 and November 15 respectively.

(3) All limited purpose subsidiaries shall have an annual audit by an independent certified public accountant and shall file an audited financial report with the Commissioner on or before June 1 for the year ended December 31 immediately preceding. Extensions of the June 1 filing date may be granted by the Commissioner for thirty (30) day periods upon a showing by the insurer and its independent certified public accountant the reasons for requesting such extension and determination by the Commissioner of good cause for an extension. The request for extension must be submitted in writing not less than ten (10) days prior to the due date in sufficient detail to permit the Commissioner to make an informed decision with respect to the extension.

(4) A limited purpose subsidiary shall provide the Commissioner with a copy of a complete set of executed documentation of an insurance securitization no later than 45 days after the closing of the transactions for such securitization.

(5) In the event of any material change in the financial condition or any change in the officers or directors of a limited purpose subsidiary, the limited purpose subsidiary shall notify the Commissioner in writing within two business days of any such change.

(6) A limited purpose subsidiary shall file annually with the Commissioner an actuarial opinion, in compliance with O.C.G.A. § 33-10-13 and Regulation 120-2-74, on reserves for all risks retained by the limited purpose subsidiary. The actuarial opinion shall be provided by an appointed actuary that meets the qualification standards prescribed by Regulation 120-2-74-.05.(2).

(7) A limited purpose subsidiary shall file annually with the Commissioner a report of the limited purpose subsidiary's risk-based capital level as of the end of the calendar year immediately preceding containing the information required by the risk-based capital instructions adopted by the NAIC.

(8) A limited purpose subsidiary shall notify the Commissioner immediately of any action by an organizing domestic reinsurer or any other person to foreclose on or otherwise take possession of collateral provided by the limited purpose subsidiary to secure any obligation of the limited purpose subsidiary.