GA - GAC
Rules and Regulations of the State of Georgia
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Subject 120-2-63 PURCHASING GROUPS

Rule 120-2-63-.01 Authority

This rule is adopted and promulgated by the Commissioner of Insurance pursuant to O.C.G.A. Secs. 33-2-9 and 33-40-1 through 33-40-21.

Rule 120-2-63-.02 Restrictions on Insurance Purchased by Purchasing Groups

(1) A purchasing group which obtains liability insurance from an insurer not admitted in this state or a risk retention group shall inform each of the members of the group which have a risk resident located in this state that the risk is not protected by an insurance insolvency guaranty fund in this state and that the risk retention group or insurer may not be subject to all insurance laws and regulations of this state.
(2) No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to the group as a whole; however, coverage may provide for a deductible or self-insured retention applicable to individual members.

Rule 120-2-63-.03 Penalties

Any purchasing group which violates or fails to comply with any provision of this regulation will be subject to fines and penalties pursuant to O.C.G.A. Sec. 33-3-20.

Rule 120-2-63-.04 Severability Provision

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