Subject 120-2-55 ADMINISTRATIVE SUPERVISION
The purpose of this Regulation is to set forth the rules and procedural requirements which the Commissioner of Insurance deems necessary to carry out the provisions of Chapter 3, Title 33 of the Georgia Insurance Code, relating to administrative supervision.
|(a)||This Regulation shall not be interpreted to limit the powers granted the Commissioner by any laws or parts of laws of this state.|
|(1)|| "Exceeded its
Powers" means, including but not limited to, the following conditions:
|(2)||"Consent" means agreement to administrative supervision by the insurer.|
This Regulation shall apply to all insurers doing business in this State.
|(1)||If the Commissioner determines that any of the conditions exist as set forth in Section 33-3-17 or 33-3-18 of the Official Code of Georgia Annotated relating to administrative supervision, the Commissioner may proceed with the administrative supervision of the insurer.|
|(2)||If placed under administrative supervision, the insurer shall have such period of time as deemed necessary by the Commissioner to comply with the requirements of the Commissioner subject to the provisions of this Regulation.|
|(3)||If it is determined by the Commissioner that the conditions giving rise to the supervision still exist at the end of the supervision period specified above, the Commissioner may extend such period.|
|(4)||If it is determined by the Commissioner that none of the conditions giving rise to the supervision exist, the Commissioner may release the insurer from supervision.|
The Commissioner may take such action as deemed necessary or appropriate to reform the insurer under supervision and the expense for such action shall be borne by the insurer. The Commissioner shall have all the powers of the shareholders, policyholders, members, subscribers, directors, committees of the board of directors, officers, managers, and attorneys-in-fact whose authority shall be subordinate to him. He shall have full power to direct and manage, to hire and discharge employees, officers and directors, notwithstanding any by-laws of the insurer or any contracts that may exist. The Commissioner may deal directly with the property and business affairs of the insurer.
|(a)||Administrative supervision consists of supervision of the actions of the Board of Directors of the company and the employees of the company. Any resolutions by the board of Directors shall be subject to the approval of the Commissioner. All actions and transactions of the employees and officers of the company are subject to the approval of the Commissioner as the administrator.|
|(b)||The Commissioner shall have control over the cash receipts and cash disbursements of the company. All company decisions shall be subject to the approval of the Commissioner.|
|(c)||The Commissioner shall be able to act for the company in connection with any of its custodian agreements.|
|(d)|| The Commissioner may require the insurer
During the period of supervision, the Commissioner or his designated appointee shall serve as the Administrator. The Commissioner may provide that the insurer is prohibited from doing any of the following things during the period of supervision, without the prior approval of the Commissioner or his appointed supervisor:
|(a)||Dispose of; convey or encumber any of its assets or its business in force;|
|(b)||Withdraw any of its bank accounts;|
|(c)||Lend any of its funds;|
|(d)||Invest any of its funds;|
|(e)||Transfer any of its property;|
|(f)||Incur any debt, obligation or liability;|
|(g)||Merge or consolidate with another company;|
|(h)||Approve new premiums or renew any policies;|
|(i)||Enter into any new reinsurance contract or treaty;|
|(j)||Terminate, surrender, forfeit, convey or lapse any insurance policy, certificate or contract, except for nonpayment of premiums due;|
|(k)||Release, pay or refund premium deposits, accrued cash or loan values, unearned premiums, or other reserves on any insurance policy, certificate or contract;|
|(l)||Make any material change in management;|
|(m)||Increase salaries and benefits of officers or directors or the preferential payment of bonuses, dividends or other payments deemed preferential; or|
|(n)||Any other action the Commissioner deems may impair the safety or security of the insurer's policyholders or certificate holders, its creditors, or the public.|
Nothing contained in this Regulation shall preclude the Commissioner from initiating proceedings to place an insurer in conservation, rehabilitation or liquidation proceedings or other delinquency proceedings, however designated under the laws of this State, regardless of whether the Commissioner has previously initiated administrative supervision proceedings under this Regulation against the insurer.
If any provision of this Regulation or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the Regulation or the applicability of such provision to other persons or circumstances shall not be affected.