GA - GAC
Rules and Regulations of the State of Georgia
Terms and Conditions of Agreement for Access to Rules and Regulations of the State of Georgia Website

(Note: certain features of this site have been disabled for the general public to prevent digital piracy. If you are an entitled government entity pursuant the Georgia Administrative Procedures Act, O.C.G.A.§ 50-13-7(d) contact the State of Georgia's Administrative Procedures Division at 678-364-3785 to enable these features for your location.)

To access this website, you must agree to the following:

These terms of use are a contract between you and/or your employer (if any), and Lawriter, LLC.

You agree not to use any web crawler, scraper, or other robot or automated program or device to obtain data from the website.

You agree that you will not sell or license anything that you download, print, or copy from this website.

THIS WEBSITE AND ITS CONTENT ARE PROVIDED "AS IS." THE STATE OF GEORGIA AND LAWRITER EXPRESSLY DISCLAIM ALL WARRANTIES, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT AND ARE NOT LIABLE TO ANY PERSON FOR ANY ERRORS IN INACCURACIES CONTAINED IN THIS WEBSITE.

By accessing and/or using this website, you agree to the terms and conditions above. If you do not agree to the terms and conditions above, you must cease accessing and/or using this website and destroy all material obtained from this website without your agreement.

If you accept these terms enter the information below and click “I AGREE”.

Subject 120-2-62 ASSUMPTION REINSURANCE

Rule 120-2-62-.01 Authority

This regulation is adopted and promulgated by the Commissioner of Insurance pursuant to the authority set forth in O.C.G.A. Sections 33-2-9, 33-52-3 and 33-52-6.

Rule 120-2-62-.02 Purpose

The purpose of this regulation is to implement Chapter 52 of Title 33 of the Official Code of Georgia Annotated to provide for the regulation of the transfer and novation of contracts of insurance by way of assumption reinsurance. This chapter sets forth a "Notice of Transfer" and "Second Notice of Transfer" pursuant to O.C.G.A Section 33-52-3(a) and an "Application for Approval of Assumption Reinsurance Agreement" pursuant to O.C.G.A. Sections 33-52-3(b) and 33-52-6.

Rule 120-2-62-.03 Definition

"Applicant" means either the transferring or the assuming insurer required to submit the "Application for Approval of Assumption Reinsurance Agreement" based on the following criteria:

(a) If both insurers are licensed to transact the business of insurance in the State of Georgia, the transferring insurer shall submit the required filings; otherwise

(b) The insurer licensed to transact the business of insurance in the state of Georgia shall submit the required filings.

Rule 120-2-62-.04 Notice Requirements

Notice in forms identical or substantially similar to the "Notice of Transfer" and "Second Notice of Transfer," attached hereto and incorporated herein as "EXHIBIT A" and "EXHIBIT B" respectively, shall be deemed to comply with the requirements of O.C.G.A. Section 33-52-3(a).

Rule 120-2-62-.05 Required Filings

The following items shall be submitted to the Commissioner of Insurance:

(a) A completed Form GID-67, entitled the "Application for Approval of Assumption Reinsurance Agreement," attached hereto and incorporated herein as "EXHIBIT C"; and
(b) A copy of the proposed notices of transfer which comply with the requirements of Rule 120-2-62-.04 of this regulation and bear unique form numbers.

Rule 120-2-62-.06 Penalties

Any insurer which violates or falls to comply with any provision of this regulation will be subject to fines and penalties applicable to licensed insurers generally, including revocation of its license or right to do business in this State.

Rule 120-2-62-.07 Severability

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

EXHIBIT A

NOTICE OF TRANSFER

IMPORTANT: THIS NOTICE AFFECTS YOUR CONTRACT RIGHTS.

PLEASE READ IT CAREFULLY.

Transfer of Policy

The ABC insurance Company has agreed to replace us as your insurer under {insert policy/certificate name and number} effective {insert date}.

The ABC Insurance Company's principal place of business is {insert address}. You may obtain financial information concerning ABC Insurance Company by contacting your Commissioner of Insurance at {insert address}.

This transfer is necessary due to {insert detailed statement explaining the reason[s]}.

The ABC Insurance Company is licensed to write this coverage in the following states: {insert states)

If the ABC Company is not licensed in the state in which you reside, this transfer may affect your guaranty fund protection or your Insurance Commissioner's ability to assist you with any matters concerning the company.

Your Rights

You may choose to reject the transfer and novation of your policy to ABC Insurance Company. If you do not want your policy transferred, you must notify us in writing no later than 60 days after the date this notice was mailed to you by signing and returning the enclosed pre-addressed, postage-paid card or by writing to us at:

{Insert name, address and facsimile number of contact person.}

IF WE DO NOT RECEIVE YOUR WRITTEN REJECTION WITHIN THE 60 DAY PERIOD, YOU WILL BE SENT A SECOND NOTICE. IF WE DO NOT RECEIVE YOUR WRITTEN REJECTION WITHIN 30 DAYS AFTER THE DATE OF THE SECOND MAILING, YOU SHALL BE DEEMED TO HAVE ACCEPTED THE TRANSFER.

If you reject the transfer, you may keep your policy with us or exercise any option under your policy.

Effect of Transfer

If you do not reject this transfer and novation, ABC

Insurance Company will be your insurer. It will have direct responsibility to you for the payment of all claims, benefits and for all other policy obligations. We will no longer have any obligations to you.

{Insert a summary of any effect that rejecting the transfer and novation will have on the policyholder's rights including, for participating policyholders, dividend payments or payments under the contract of insurance.}

If you have any further questions about this agreement, you may contact XYZ Insurance Company or ABC Insurance Company.

Sincerely,

______________________

President

XYZ Insurance Company

XYZ Insurance Company

111 No Street

Smithville, USA

555/555-5555

ABC Insurance Company

222 No Street

Jonesvilie, USA

333/333-3333

{Notice Date}

RESPONSE CARD

______ I reject the proposed transfer and novation of my policy from XYZ Insurance Company to ABC insurance company and wish to retain my policy with XYZ insurance company.

{Date} {Signature}

__________________________________________________________

Name:___________________________

Street Address:_________________

City, State, Zip:_______________

Form No.:

EXHIBIT B

SECOND NOTICE OF TRANSFER

IMPORTANT: "THIS NOTICE AFFECTS YOUR CONTRACT RIGHTS.

PLEASE READ IT CAREFULLY.

Transfer of Policy

You were previously sent a Notice of Transfer notifying you that the ABC Insurance Company has agreed to replace us as your insurer under {insert policy/certificate name and number} effective {insert date}.

The ABC Insurance Company's principal place of business is {insert address}. You may obtain financial information concerning ABC Insurance Company by contacting your Commissioner of Insurance at {insert address}.

This transfer is necessary due to {insert detailed statement explaining the reason(s)}.

The ABC Insurance Company is licensed to write this coverage in the following states: {insert states}.

If the ABC Insurance Company is not licensed in the state in which you reside, this transfer may affect your guaranty fund protection or your Insurance Commissioner's ability to assist you with any matters concerning the company.

Your Rights

Since we did not receive the pre-addressed, postage-paid response card or other written notice from you indicating your rejection of the proposed transfer of your policy, this second notice is required to be sent to you. If you do not not want your policy transferred and novated, you must notify us in writing no later than 30 days after the date this notice was mailed to you by signing and returning the enclosed pre-addressed, postage-paid card or by writing to us at:

{Insert name, address and facsimile number of contact person.}

IF WE DO NOT RECEIVE YOUR WRITTEN REJECTION WITHIN THE THIRTY DAY PERIOD FOLLOWING THE DATE WE MAILED THIS NOTICE, YOU SHALL BE DEEMED TO HAVEACCEPTEDTHE TRANSFER.

If you reject the transfer, you may keep your policy with us or exercise any option under your policy.

Effect of Transfer

If you do not reject this transfer and novation, ABC Insurance Company will be your insurer. It will have direct responsibility to you for the payment of all claims, benefits and for all other policy obligations. We will no longer have any obligations to you.

If you do not reject this transfer and novation, you should make all premium payments and claims submissions to ABC Insurance Company and direct all questions to ABC insurance company.

{Insert a summary of any effect that rejecting the transfer and novation will have on the policyholder's rights including, for participating policyholders, dividend payments or payments under the contract of insurance.}

If you have any further questions about this agreement, you may contact XYZ Insurance Company or ABC Insurance Company.

Sincerely,

______________________

President

XYZ Insurance Company

XYZ Insurance Company

111 No Street

Smithville, USA

555/555-5555

ABC Insurance Company

222 No Street

Jonesville, USA

333/333-3333

{Notice Date}

RESPONSE CARD

_____ I reject the proposed transfer and novation of my policy from XYZ Insurance Company to ABC insurance company and wish to retain my policy with XYZ Insurance Company.

{Date} {Signature}

___________________________________________________________

Name:__________________________

Street Address:________________

City, State, Zip:______________

Form No.:

EXHIBIT C

Application for Approval of Assumption Reinsurance Agreement

Pursuant to O.C.G.A. Section 33-52-6, the Commissioner of insurance must approve or disapprove any assumption reinsurance transaction affecting Georgia insureds. This form has been designed to elicit the information required by that section.

Assuming Company Name: ___________________________________

Company NAIC #: __________________________________________

Transferring Company Name: _______________________________

Company NAIC #: __________________________________________

Form Number or Identification of Policy Contracts to be Transferred:

__________________________________________________________

Proposed Date of Transfer/Assumption:

Please provide a detailed statement explaining the reasons for the transfer of the business:

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

Check the following items as submitted. Enclose additional filings referenced by these numbers as necessary to document compliance with these requirements.

______ 1. Attach a copy of the Assumption Reinsurance

Agreement.

______ 2. Attach a copy of the proposed Certificate of

Assumption.

______ 3. Attach a copy of the proposed Notice of Transfer and proposed Second Notice of Transfer.

______ 4. If either the ceding or assuming company is not domiciled in Georgia, please enclose copies of the approvals of the entire transaction by the insurance supervisory officials of the states of domicile of the companies involved.

______ 5. Attach a statement describing provisions made for servicing those policyholders who reject the transfer.

______ 6. If the block of business to be assumed is participating business by a stock or mutual company, attach a statement describing the disposition of the accumulated surplus connected with the block of business and the level of future dividends.

______ 7. Describe the effect of this assumption reinsurance transaction on any policyholder protection under the Georgia Insurers Insolvency Pool, the Georgia Life and Health Insurance Guaranty Association, or any other state guaranty association or insolvency pool.

__________________________________

Signature

__________________________________

Name and Title (please type)

__________________________________

Street Address

__________________________________

City State Zip Code

__________________________________

Telephone Number

__________________________________

Date

IF YOU ARE AN INDIVIDUAL WITH A DISABILITY AND WISH TO ACQUIRE THIS FORM IN AN ALTERNATIVE FORMAT, PLEASE CONTACT THE ADA COORDINATOR, OFFICE OF COMMISSIONER OF INSURANCE, NO.2 MARTIN LUTHER KING, JR. DRIVE, ATLANTA, GEORGIA 30334 404 656-2056, TDD # 404 656-4031.