Ga. Comp. R. & Regs. R. 120-2-10-.01 - Profit-Sharing Policies

(1) No policy may be sold or approved for sale in Georgia on or after November 1, 1967 which provides that the policyholder will be eligible to participate in any future distribution of general corporate profits, with special advantage not available to person holding other types of policies issued by the company to individuals of the same class and equal expectation of life, nor may any policy be sold or approved for sale which provides that the policy holder will be eligible to participate in any future distribution of profits, savings, or unabsorbed portions of premium unless the requirements set for in Regulation 120-2-10-.08 have been met.

(2) No policy may be sold or approved for sale in Georgia after said date which uses a policy name implying or that may reasonably be construed as implying that only a limited number or a limited class of persons will be eligible to buy such policy, unless such limitation is related to actuarially sound underwriting practices.

(3) This section is not intended to restrict or prohibit the sale in this State of insurance policies or annuities authorized by 33-14-16 and 33-25-6 of the Georgia Insurance Code, nor is it intended to restrict an insurer from issuing both participating and nonparticipating policies.

Notes

Ga. Comp. R. & Regs. R. 120-2-10-.01

Ga. L. 1960, pp. 289, 305; O.C.G.A. Sec. 33-2-9.

Original Role entitled "Profit-Sharing Policies" was filed and effective July 20, 1965. Amended: Rule repealed and a new Rule of the same title adopted. Filed November 13, 1967; effective November 1, 1967. Repealed: New Rule of same title adopted. F. Aug. 24, 1989; eff. Jun. 1, 1990, as specified by the Agency.