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-.12 - Investments

(1) The limited purpose subsidiary's investment policy and its investments shall comply with Article 2 of Chapter 11 of Title 33 of the Official Code of Georgia Annotated unless otherwise specified in this Rule or approved by the Commissioner in the limited purpose subsidiary's plan of operation or an amendment to the limited purpose subsidiary's plan of operation.

(2) In addition to assets permitted by O.C.G.A. § 33-10-1, admitted assets of the limited purpose subsidiary shall include letters of credit, guaranties of a parent, and any other assets approved by the Commissioner, which shall be deemed to be, and reported as, admitted assets of the limited purpose subsidiary. The Commissioner shall have the authority to reduce the value of admitted assets, other than assets already covered by the Accounting Practices and Procedures Manual of the NAIC, if the Commissioner determines that the value of those assets has decreased. At least 30 days prior to reducing the value of such admitted assets, the Commissioner shall notify the limited purpose subsidiary and provide the limited purpose subsidiary an opportunity to remedy the issues identified by the Commissioner.

(3) A limited purpose subsidiary shall not make a loan to or an investment in any person, other than as permitted in the limited purpose subsidiary's plan of operation, without prior written approval of the Commissioner, and any such loan or investment must be evidenced by documentation approved by the Commissioner.