Ga. Comp. R. & Regs. R. 120-2-49-.03 - License; Application; Issuance; Net Worth; Probationary License; Exemption
(1) It is unlawful for any business entity to
act as or hold itself out to be an administrator in this State without a valid
license issued by the Commissioner of Insurance. To qualify for and hold a
license to act as an administrator in this State, an administrator must
otherwise be in compliance with Article 2 of Chapter 23 of Title 33 of the
Official Code of Georgia Annotated, this Regulation, and with its
organizational agreement.
(2) The
administrator shall file with the Commissioner an application for a license
upon a form to be furnished by the Commissioner, which application shall
include or have attached the following information and documents and any other
materials the Commissioner deems necessary to adequately assess the merits of
the application:
(a) All basic organizational
documents of the administrator, the articles of incorporation, articles of
association, partnership agreement, trade name certificate, trust agreement,
shareholder agreement, and other applicable documents, and all amendments to
those documents.
(b) The bylaws,
rules and regulations or similar documents regulating the conduct or the
internal affairs of the administrator.
(c) The names, addresses, official positions,
and professional qualifications of the individuals who are responsible for the
conduct of the affairs of the administrator, including all members of the board
of directors, board of trustees, executive committee, or other governing board
or committee, the principal officers in the case of a corporation, the partners
or members in the case of a partnership or association, and any other person
who exercises control or influence over the affairs of the
administrator.
(d) Financial
statements certified by the President, Chief Financial Officer or Treasurer or
audited reports for the two most recent years, or such other information as the
Commissioner may require in order to review the current financial condition of
the applicant.
(e) If the applicant
is not currently acting as an administrator, a statement of the amounts and
sources of the funds available for organizational expenses and the proposed
arrangements for reimbursement and compensation of incorporators or other
principals.
(f) Proof that the
applicant possesses a minimum net worth of $200,000; however, the Commissioner
may, in his or her discretion, require a higher net worth if he or she deems
such higher net worth necessary for the protection of the public. Letters of
credit, backstop guarantees and special corporate structures will not be taken
into consideration by the Commissioner in determining the net worth
requirement.
(g) An application for
an administrator's license or an application for renewal of such license shall
be accompanied by fees as provided in O.C.G.A. §
33-8-1.
(3) The applicant shall make available for
inspection by the Commissioner or his or her authorized representative copies
of all contracts with insurers, self-insurers, or other persons utilizing the
services of the administrator.
(4)
The Commissioner shall not issue a license if he determines that the
administrator or any principal thereof is not competent, trustworthy,
financially responsible, or has had an insurance license refused, revoked, or
suspended by any state.
(5) A
license issued under this section may be issued on a probationary basis in the
discretion of the Commissioner. The probationary license may be issued for not
longer than 12 months and not less than 3 months and is subject to revocation
without a hearing. The Commissioner, at his/her discretion, shall prescribe the
terms of probation, may extend the probationary period, or refuse to grant a
license at the end of any probationary period.
(6) Nonresident applicants for licenses under
this chapter shall execute in a form acceptable to the Commissioner an
agreement to be subject to the jurisdiction of the Georgia Commissioner of
Insurance and courts of this state on any matter related to their insurance
activities in Georgia, on the basis of service of process under Title 33 of the
Official Code of Georgia Annotated or other service authorized in the Georgia
Rules of Civil Procedure.
(7) Any
business entity acting as an administrator that claims an exemption from the
licensure requirements as defined by O.C.G.A. §
33-23-100(b)(1 -
12) shall file an annual claim of exemption each December 31 on a form as
prescribed by the Commissioner.
Notes
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