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Rules and Regulations of the State of Georgia
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Subject 120-2-21 INSURANCE PREMIUM FINANCE COMPANIES

Rule 120-2-21-.01 Authority

This Chapter is promulgated by the Commissioner of Insurance pursuant to the authority set forth in O.C.G.A. §§ 33-2-9 and 33-22-1et seq.

Rule 120-2-21-.02 Application for Original and Renewal License

(1) Each application for an original license as an Insurance Premium Finance Company shall be made on Form GID-21, entitled "Application for License as an Insurance Premium Finance Company." Fees shall be remitted in accordance with O.C.G.A. § 33-8-1.
(2) Each application for a renewal as an Insurance Premium Finance Company shall be made prior to March 1 of each year on Form GID-22, entitled "Application for Renewal License as an Insurance Premium Finance Company." Fees shall be remitted in accordance with O.C.G.A. § 33-8-1.

Rule 120-2-21-.03 Licenses and Application Procedures

(1) Each application for an original license as an Insurance Premium Finance company shall be accompanied by a Form GID-23, entitled "Biographical Questionnaire and Affidavit." A separate form shall be completed and executed:
(a) in the case of a sole proprietor, by the sole proprietor;
(b) in the case of a partnership, by each partner; or
(c) in the case of a corporation, by each officer, director, and owner of more than 10% of the outstanding shares of stock.
(2) Biographical Questionnaires need not be filed with an application for renewal of a license unless changes have taken place in the business organization involving individuals who have not previously filed such questionnaire.
(3) Each individual listed in section (1) above shall submit one copy of an investigative background report. The reports should be submitted directly to this office from the investigative firm.
(4) Each licensee shall deposit with the Commissioner a bond in the amount of $25,000 or securities in the amount of $25,000. The bond must be submitted on form GID-28, "Insurance Premium Finance Company's Bond." Prior to cancellation or termination of a bond, 30 days written notice must be filed with the Commissioner of Insurance.
(5) If such licensee chooses to deposit securities, as opposed to a bond, with the Commissioner under the provisions of subsection (4) above:
(a) A licensee may invest in assets deemed eligible for deposit under O.C.G.A. § 33-12-3 and as described in O.C.G.A. § 33-11-5(3).
(b) Such licensee shall also file necessary documents as required by the custodian bank for state security deposits.

Rule 120-2-21-.04 Termination and Transfer of Licenses

(1) Death of a proprietor shall terminate the license; provided, however, that if notice of such death is furnished to the Commissioner and the Commissioner is satisfied, by examination or otherwise, that the interests of insureds and insurers have been adequately protected, he may issue a temporary license:
(a) To the executor or administrator of the estate of a deceased proprietor;
(b) To a surviving next of kin of such deceased proprietor if no administrator or executor has been appointed or qualified, but any such license issued shall be revoked upon issuance of a license to an administrator or executor under subsection (1)(a) of this section.
(2) Death or withdrawal of a partner shall suspend the license if the licensee is a partnership; provided, however, that if notice of such death or withdrawal is provided to the Commissioner within 30 days of the event and the Commissioner is satisfied by examination or otherwise, that the interests of insured and insurers have been adequately protected, he may reinstate the suspended license.
(3) Licenses are not transferable, except that the withdrawal of a partner from a licensed partnership or the admission of a new partner shall not require a new license for the new partnership provided that the new partnership complies with Rule 120-2-21-.04(4).
(4) When a partner retires from a licensed partnership or a new partner is admitted, or when a person ceases to be an officer, director, or 10% stockholder of a licensed corporation or a person becomes an officer, director or 10% stockholder of a licensed corporation, the Commissioner shall, within ten (10) days after the event, be advised of the facts in detail by letter. The letter shall be accompanied by a duly completed Biographical Questionnaire (on Form GID-23) of any new partner or any new officer, director or 10% stockholder. Each licensee shall supply such additional information as the Commissioner may request.

Rule 120-2-21-.05 Separation and Preservation of Records

(1) If the licensee engages in any other business, the records relating to the insurance premium finance business shall be kept separate from the records of any other business.
(2) Every licensee shall preserve every premium finance contract and all documents relating thereto (and copies of all documents delivered to an insured) for at least three years after making the final entry in respect to any premium finance agreement.
(3) The Commissioner may, at any time, require any licensee to bring such records as he may direct to the Commissioner's Office for examination, or the Commissioner or his duly authorized representative may conduct an examination of such records on the premises of the licensee.

Rule 120-2-21-.06 Notice to the Insurer

Any licensee which enters into a premium finance agreement shall notify the insurer of the existence of such agreement within twenty (20) days of the date such agreement is signed.

Rule 120-2-21-.07 Description of Insurance Contracts Where Policy Information Is Not Immediately Known

(1) In case of an application to the Georgia Automobile Insurance Plan where the policy information is not immediately available, the Premium Finance Contract shall show "Georgia Automobile Insurance Plan" and all descriptive information pertaining to the policy which is known.
(2) In other instances where complete policy information is not immediately available, the Premium Finance Contract shall show all descriptive information pertaining to the policy which is known.

Rule 120-2-21-.08 Penalties

Any person failing to comply with the requirements of this Regulation Chapter shall be subject to such penalties as may be appropriate under the insurance laws of this State.

Rule 120-2-21-.09 Severability

If any provision of this Regulation Chapter, or the application thereof to any person or circumstance, is held invalid by a court of competent jurisdiction, the remainder of the Regulation Chapter or the applicability of such provision to other persons or circumstances shall not be affected.

Rule 120-2-21-.10 Repealed

Rule 120-2-21-.11 Repealed