Ga. Comp. R. & Regs. R. 120-2-53-.05 - Disposition and Penalties

(1) If the Commissioner determines the cancellation or nonrenewal is lawful, termination under the policy shall be effective as of the date and time originally set forth under the notice of cancellation or nonrenewal. Termination of the interim coverage provided pursuant to O.C.G.A. § 33-24-45(o) during the pendency of the Commissioner's review shall not be effective less than five (5) days following the date of the Commissioner's decision. The Commissioner's decision shall establish the effective date of the termination of the interim coverage provided during the review of the cancellation or nonrenewal and shall serve as the official notice of termination of coverage referenced in O.C.G.A. § 33-24-45(e)(1).

(2) In the event that the cancellation or nonrenewal is upheld by the Commissioner,

(a) the insurer shall retain that portion of the pro rata premiums tendered for the period of time beginning with the original date of cancellation or nonrenewal and ending with the date of the termination of the interim coverage as established by the Commissioner pursuant to Rule 120-2-53-.05(1); and

(b) the insurer shall refund all remaining premiums to the insured within ten (10) working days of receipt of the Commissioner's decision establishing the effective date of the termination of the interim coverage.

(3) A penalty may be assessed against the insurer in all cases where the Commissioner has determined that the cancellation or nonrenewal was not lawful. If the Commissioner makes such a determination, the insurer shall reinstate or renew the policy. The Commissioner may also order such other remedies and penalties as he or she deems appropriate and as are authorized by law in the event of an abusive nonrenewal or cancellation or in the event of a determination that the insurer has engaged in a pattern or practice of improper policy nonrenewal or cancellation procedures.

Notes

Ga. Comp. R. & Regs. R. 120-2-53-.05

O.C.G.A. Secs. 33-2-9, 33-24-45.

Original Rule entitled "Severability" adopted. F. Apr. 7, 1994; eff. Apr. 27, 1994. Repealed: New Rule entitled "Disposition and Penalties" adopted. F. Sept. 16, 1997; eff. Oct. 6, 1997.