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-.05 - Maintenance of Information; Books and Records; Reporting Requirements; Return Credits; Correction o

(1) Every administrator shall maintain at its principal administrative office for the duration of the written agreement referred to in Rule 120-2-49-.04 and five years thereafter books and records of all transactions between it, insurers, self-insurers and insured persons. The Commissioner shall have access to such books and records for the purpose of examination, audit and inspection. Any trade secrets contained therein, including but not limited to the identity and addresses of policyholders and certificate holders, shall be confidential, except the Commissioner may use such information in any proceedings instituted against the administrator. The insurer shall retain the right to continuing access to such books and records of the administrator sufficient to permit the insurer to fulfill all of its contractual obligations to insured persons, subject to any restrictions in the written agreement between the insurer and administrator on the proprietary rights of the parties in such books and records.

(2) Administrators shall maintain detailed books and records that reflect all administered transactions specifically in regard to premiums, premium taxes, agent's commissions, administrator's fees, contributions received and deposited and claims and authorized expenses paid.

(3) The detailed preparation, journalizing, and posting of such books and records shall be made in accordance with the terms and conditions of the service agreement between the administrator and the insurer, self-insurer, or plan sponsor, and in accordance with the "Employee Retirement and Income Security Act of 1974," 88 Stat. 829, 29 U.S.C. § 1001 et seq., as amended and to enable the insurer to complete the National Association of Insurance Commissioners' annual financial statement.

(4) All books and records maintained by an administrator on behalf of an insurer, self-insurer or plan sponsor for a calendar or fiscal year shall be maintained for the period in which the administrator is providing service for the insurer, self-insurer or plan sponsor and for five years thereafter.

(5) Administrators shall maintain a cash receipts register of all premiums or contributions received. The minimum detail required in the register shall be:

(6) The description of a disbursement shall be in sufficient detail to identify the source document substantiating the purpose of the disbursement, and shall include all of the following:

(7) If the disbursement is for the earned administrative fee or commission, the disbursement shall be supported by a written record reflecting the identifying deposit from which the fee was matched.

(8) All journal entries for receipts and disbursements shall be supported by evidential matter. The evidential matters must be referenced in the journal entry so that it may be traced for verification.

(9) The administrator shall prepare and maintain monthly financial institution account reconciliations if such service is requested by an insurer or plan sponsor as provided in the service agreement by and between the administrator and the insurer or plan sponsor.

(10) The administrator shall prepare a report to be filed with the insurer and plan sponsor within ninety days of the end of the fiscal year of the plan, which discloses at least all of the following:

(11) Return premiums or contributions shall be paid to the insurer, or self-insurer or plan sponsor or credited to the account of the insurer, self-insurer or plan sponsor within thirty days after receipt by the administrator. If the return premium or contribution is credited to the insurer, self-insurer or plan sponsor, the credit must be shown and applied to the next billing statement sent to the insurer, self-insurer or plan sponsor.