Ga. Comp. R. & Regs. R. 120-2-30-.04 - Issuance of Notes or Certificates

(1) Prior to the making of any surplus loan, the borrowing insurer must file with the Georgia Insurance Department a sample copy of each series and type of surplus note or certificate to be issued and a statement which relates the purposes of the loan and reasons why such loan should be approved.

(2) The loan and the note or certificate shall be subject to the Commissioner's approval. Without the approval of both the loan and the note or certificate, the loan cannot be made and no note or certificate may be issued.

(a) The Commissioner shall disapprove any proposed loan if he finds the loan is unnecessary or excessive for the purpose intended, or that the information filed by the insurer which relates the purposes and reasons why such loan should be approved is inadequate.

(b) The Commissioner shall disapprove a note or certificate if its terms are not fair to the policyholders of the issuing insurer.

Notes

Ga. Comp. R. & Regs. R. 120-2-30-.04

Ga. L. 1960, pp. 289, 305, 549, 1969, pp. 490, 491.

Original Rule entitled "Issuance of Notes or Certificates" adopted as ER. 120-2-30-0.3-.04. F. and eff. August 5, 1977, the date of adoption. Amended: Permanent Rule of same title adopted. F. Dec. 19, 1977; eff. Jan. 8, 1978. Submitted for Publishing: Mar. 15, 2007.