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 120-2-49 - ADMINISTRATOR REGULATION
Rule 120-2-49-.03 - License; Application; Issuance; Net Worth; Probationary License; Exemption

Universal Citation: GA Rules and Regs r 120-2-49-.03

Current through Rules and Regulations filed through September 23, 2024

(1) It is unlawful for any business entity to act as or hold itself out to be an administrator in this State without a valid license issued by the Commissioner of Insurance. To qualify for and hold a license to act as an administrator in this State, an administrator must otherwise be in compliance with Article 2 of Chapter 23 of Title 33 of the Official Code of Georgia Annotated, this Regulation, and with its organizational agreement.

(2) The administrator shall file with the Commissioner an application for a license upon a form to be furnished by the Commissioner, which application shall include or have attached the following information and documents and any other materials the Commissioner deems necessary to adequately assess the merits of the application:

(a) All basic organizational documents of the administrator, the articles of incorporation, articles of association, partnership agreement, trade name certificate, trust agreement, shareholder agreement, and other applicable documents, and all amendments to those documents.

(b) The bylaws, rules and regulations or similar documents regulating the conduct or the internal affairs of the administrator.

(c) The names, addresses, official positions, and professional qualifications of the individuals who are responsible for the conduct of the affairs of the administrator, including all members of the board of directors, board of trustees, executive committee, or other governing board or committee, the principal officers in the case of a corporation, the partners or members in the case of a partnership or association, and any other person who exercises control or influence over the affairs of the administrator.

(d) Financial statements certified by the President, Chief Financial Officer or Treasurer or audited reports for the two most recent years, or such other information as the Commissioner may require in order to review the current financial condition of the applicant.

(e) If the applicant is not currently acting as an administrator, a statement of the amounts and sources of the funds available for organizational expenses and the proposed arrangements for reimbursement and compensation of incorporators or other principals.

(f) Proof that the applicant possesses a minimum net worth of $200,000; however, the Commissioner may, in his or her discretion, require a higher net worth if he or she deems such higher net worth necessary for the protection of the public. Letters of credit, backstop guarantees and special corporate structures will not be taken into consideration by the Commissioner in determining the net worth requirement.

(g) An application for an administrator's license or an application for renewal of such license shall be accompanied by fees as provided in O.C.G.A. § 33-8-1.

(3) The applicant shall make available for inspection by the Commissioner or his or her authorized representative copies of all contracts with insurers, self-insurers, or other persons utilizing the services of the administrator.

(4) The Commissioner shall not issue a license if he determines that the administrator or any principal thereof is not competent, trustworthy, financially responsible, or has had an insurance license refused, revoked, or suspended by any state.

(5) A license issued under this section may be issued on a probationary basis in the discretion of the Commissioner. The probationary license may be issued for not longer than 12 months and not less than 3 months and is subject to revocation without a hearing. The Commissioner, at his/her discretion, shall prescribe the terms of probation, may extend the probationary period, or refuse to grant a license at the end of any probationary period.

(6) Nonresident applicants for licenses under this chapter shall execute in a form acceptable to the Commissioner an agreement to be subject to the jurisdiction of the Georgia Commissioner of Insurance and courts of this state on any matter related to their insurance activities in Georgia, on the basis of service of process under Title 33 of the Official Code of Georgia Annotated or other service authorized in the Georgia Rules of Civil Procedure.

(7) Any business entity acting as an administrator that claims an exemption from the licensure requirements as defined by O.C.G.A. § 33-23-100(b)(1 - 12) shall file an annual claim of exemption each December 31 on a form as prescribed by the Commissioner.

O.C.G.A. Secs. 33-2-9, 33-23-100et seq., 33-23-101, 33-23-105.

Disclaimer: These regulations may not be the most recent version. Georgia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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