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Subject 120-2-46 AUTOMOBILE SELF-INSURANCE REGULATION

Rule 120-2-46-.01 Authority

The purpose of this Chapter is promulgated by the Commissioner of Insurance pursuant to the authority set forth in O.C.G.A. Sections 33-2-9 and 40-9-101.

Rule 120-2-46-.02 Purpose

To implement O.C.G.A. Section 40-9-101 and to provide for the regulation of automobile self-insurers by the Commissioner of Insurance.

Rule 120-2-46-.03 Application for Self-Insurance

(1) An application for self-insurance shall be made on an approved form to the Commissioner of Insurance. The application shall contain:
(a) A list of all vehicles registered in the name of the applicant including the make, model, year, manufacturer's identification number, title certificate number or other proof of ownership, and license plate number (if issued). Lists compiled by magnetic tape, floppy disk, or by other electronic data systems shall be permitted if acceptable to the Commissioner;
(b) A complete audited financial statement of assets, liabilities, including the projected impact of open and pending claims, and net worth for the latest financial year of the applicant in sufficient detail to show that the applicant possesses and will continue to possess the ability to pay judgments or valid claims. All audited financial statements shall be prepared by and certified as to the correctness by an independent certified public accountant; and
(c) A blank copy of the self-insurance identification card to be utilized by the applicant as provided in paragraph (2) of this Rule.
(2) Each applicant shall furnish an agreement to:
(a) Provide efficient claims handling procedures substantially equivalent to those afforded by a policy of automobile liability insurance in compliance with O.C.G.A. Chapter 33-34, the "Georgia Motor Vehicle Accident Reparations Act." The applicant shall attach a complete copy of the procedures which the applicant will use in investigating and adjusting claims, including amounts of coverages, benefits, and payment procedures;
(b) Provide the coverages and benefits required under O.C.G.A. Chapter 33-34, the "Georgia Motor Vehicle Reparations Act," and O.C.G.A. Chapter 40-9, the "Motor Vehicle Safety Responsibility Act," except that uninsured motorist coverages as provided in O.C.G.A. Section 33-7-11 and optional personal injury protection coverages as provided in O.C.G.A. Section 33-34-5 shall not be required;
(c) Issue a self-insurance identification card for each vehicle to be carried in each vehicle, showing:
1. The self-insurer's certificate number, issue date, expiration date, vehicle, year, make, model, and vehicle identification number; or
2. The self-insurer's certificate number, issue date, and expiration date, with an individual number assigned to each such card. The cards permitted under this subparagraph shall be serialized and an inventory kept of the number of such cards issued and the vehicle to which each numbered card is assigned; and
(d) Allow the Commissioner of Insurance or his representative to examine and verify at any time pertinent information contained in the application for self-insurance or any financial statement. Examinations may consist of, but are not limited to, on-site inspection of vehicles, premises, claims files and accounting records. Costs associated with any examination as ordered by the Commissioner shall be borne by the self-insurer.
(3) Information listing accidents in which applicants' vehicles were involved during the preceding three years shall be furnished, subject to requests for further information by the Commissioner.

Rule 120-2-46-.04 Financial Conditions

(1) Upon approval of the application by the Commissioner of Insurance, a certificate of self-insurance may be issued. Approval shall be conditioned upon a showing of sufficient net worth, sufficient claims handling procedures, and a guarantee of compliance with the "Georgia Motor Vehicle Reparations Act" and the "Motor Vehicle Safety Responsibility Act" in the form of a surety bond executed by an authorized surety insurer in the favor of and approved by the Commissioner of Insurance or approved securities deposited in trust with the Commissioner of Insurance.
(2) For the purpose of issuance of a certificate of self-insurance, sufficient net worth and the minimum surety bond or security deposit amounts shall be based as follows on the number of vehicles registered in the applicant's name:


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(3) For purposes of reporting net worth, the amount of a security deposit posted with the Commissioner of Insurance may be recorded as an asset.

Rule 120-2-46-.05 Reports

(1) A self-insurer shall be required to submit quarterly reports showing the vehicles covered under the certificate of self-insurance. Such reports shall be due on January 1, April 1, July 1, and October 1 of each year.
(2) Quarterly reports of vehicles shall specify additions to and deletions from the report of the preceding quarter. The self-insurer shall keep a daily record of additions to and deletions from the list of covered vehicles, which record shall be available to the Commissioner upon request. Deviations between dates contained on the certificate of title of a vehicle and corresponding effective dates of coverages shall be explained in the daily record.
(3) A self-insurer shall notify the Commissioner of Insurance within thirty (30) days of any accident reported to the self-insurer resulting in bodily injury or property damage and all accidents involving more than one vehicle.
(4) A self-insurer shall provide any information requested by the Commissioner of Insurance concerning open, pending, or closed claims.

Rule 120-2-46-.06 Annual Renewals

All certificates issued or renewed by the Commissioner of Insurance on or after July 1, 1989, shall conform to the rules contained in this Chapter. All certificates of self-insurance shall expire one year from the date of issuance. In order to be issued a new certificate on such anniversary date, each self-insurer shall reapply no later than thirty (30) days prior to expiration of the certificate.

Rule 120-2-46-.07 Revocations

A certificate of self-insurance may be revoked by the Commissioner of Insurance upon the following grounds:

(a) The self-insurer has failed to satisfy any judgment within thirty (30) days after such judgment has become final;
(b) The self-insurer has failed to pay any claim for which there is no reasonably disputed issue of fact or law within (30) days of its submission;
(c) A payment is made by the authorized surety insurer or a claim is made against securities held in trust by the Commissioner of Insurance as a result of the self-insurer's failure to satisfy any judgment or pay any claim for which there is no reasonably disputed issue of fact or law;
(d) Failure to maintain efficient claim handling procedures substantially equivalent to those afforded by a policy of automobile liability insurance in compliance with O.C.G.A. Chapter 33-34, the "Georgia Motor Vehicle Reparations Act";
(e) Failure to provide benefits and coverages under O.C.G.A. Chapter 33-34, the "Georgia Motor Vehicle Accident Reparations Act." Benefits required to be paid without regard to fault shall be payable monthly as loss accrues. Such benefits are overdue if not paid within thirty (30) days after the self-insurer receives reasonable proof of the fact and the amount of loss sustained;
(f) Failure to timely file with the Commissioner of Insurance the quarterly reports required under this Chapter;
(g) Cancellation or expiration of the surety bond by the surety insurer or the self-insurer, unless proof is provided that the bond has been replaced or securities filed as required under this Chapter; or
(h) Any other violation of this Chapter or the orders of the Commissioner of Insurance under this Chapter.

Rule 120-2-46-.08 Duties of Commissioner of Insurance

The Commissioner of Insurance shall:

(a) Notify the Department of Public Safety of any self-insurance certificate which is revoked pursuant to this Chapter;
(b) Notify the Department of Public Safety of the name of any self-insurer who does not reapply for a certificate of self-insurance;
(c) Provide a copy of quarterly reports as required to be filed under this Chapter to the Department of Public Safety; and
(d) Provide any information concerning self-insurers as requested by the Department of Public Safety for enforcement of the "Georgia Motor Vehicle Reparations Act" or the "Motor Vehicle Safety Responsibility Act."

Rule 120-2-46-.09 Hearings

All hearings and administrative proceedings involving self-insurers under this Chapter or under applicable laws pertaining to self-insurers shall be under such procedures as are set forth in O.C.G.A. Title 33 and the Rules and Regulations of the Georgia Insurance Department.