Ga. Comp. R. & Regs. R. 120-2-49-.07 - Administrator Bond; Errors and Omissions Coverage
(1) Every administrator shall file a bond
with the Commissioner. The administrator shall file a certificate of such bond,
in a form acceptable by a corporate surety insurer authorized to transact
insurance in this state in favor of Commissioner of Insurance of the state of
Georgia, continuous in form and in an amount equal to at least ten percent of
the amount of the funds handled or managed annually by the administrator based
on the preceding year, or if no funds were handled during the preceding year,
ten percent of the amount of funds reasonably estimated to be handled during
the current calendar year. In no event will the bond be less than
$100,000.
(2) The bond shall inure
to the benefit of any person damaged by any fraudulent act or conduct of the
administrator and must be conditioned upon faithful accounting and application
of all money coming into the administrator's possession in connection with its
activities as an administrator.
(3)
The bond remains in force until released by the Commissioner or canceled by the
surety. Without prejudice to any liability previously incurred, the surety may
cancel the bond upon 30 days' advance notice to the administrator and the
Commissioner. An administrator's license shall be suspended if it does not file
with the Commissioner a replacement bond before the date of cancellation of the
previous bond. A replacement bond must meet all requirements of this section
for the initial bond.
(4) Each
administrator shall obtain errors and omissions coverage or other appropriate
liability insurance, written by an insurer authorized to transact insurance in
this state, in an amount of at least $100,000.
(5) Any policy written in accordance with
paragraph (4) of this Rule shall be for a term of at least one year and shall
contain provisions that:
(a) Cancellation or
termination of the policy is not effective except upon sixty (60) days written
notice by registered or certified mail to the other party to the policy and to
the Commissioner; and
(b) The
policy is automatically renewable at the expiration of the policy period except
upon sixty (60) days written notice by registered or certified mail by the
party not renewing the policy to the other party to the policy and to the
Commissioner.
(6) Upon
approval by the Commissioner, bonds or policies may be written by an eligible
surplus lines insurer.
(7)
Compliance by the administrator with paragraph (4) of this Rule is a
prerequisite to approval of its application by the Commissioner.
(8) Any bond and errors and omissions
coverage required for licensure and renewal purposes shall be maintained in
place by the administrator for a period of at least one year immediately
following the surrender, non-renewal or revocation of the license.
Notes
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