Ga. Comp. R. & Regs. R. 120-2-54-.04 - Commissioner's Authority
(a) For the purposes of making a
determination of an insurer's financial condition under this regulation, the
Commissioner may:
(1) Disregard any credit or
amount receivable resulting from transactions with a reinsurer that is
insolvent, impaired, or otherwise subject to a delinquency
proceeding;
(2) Make appropriate
adjustments including disallowance to asset values attributable to investments
in or transactions with parents, subsidiaries, or affiliates consistent with
the NAIC Accounting Practices And Procedures Manual, State laws, and
regulations;
(3) Refuse to
recognize the stated value of accounts receivable if the ability to collect
receivables is highly speculative in view of the age of the account or the
financial condition of the debtor; or
(4) Increase the insurer's liability in an
amount equal to any contingent liability, pledge, or guarantee not otherwise
included if there is a substantial risk that the insurer will be called upon to
meet the obligation undertaken within the next twelve-month period.
(b) If the Commissioner determines
that the continued operation of the insurer licensed to transact business in
this State may be hazardous to its policyholders, creditors, or the general
public, then the Commissioner may, upon a determination, issue an order
requiring the insurer to:
(1) Reduce the
total amount of present and potential liability for policy benefits by
reinsurance;
(2) Reduce, suspend,
or limit the volume of business being accepted or renewed; or
(3) Reduce general insurance and commission
expenses by specified methods;
(4)
Increase the insurer's capital and surplus;
(5) Suspend or limit the declaration and
payment of dividend by an insurer to its stockholders or to its
policyholders;
(6) File reports in
a form acceptable to the Commissioner concerning the market value of a
security;
(7) Limit or withdraw
from certain investments or discontinue certain investment practices to the
extent the Commissioner deems necessary;
(8) Document the adequacy of premium rates in
relation to the risks insured;
(9)
File, in addition to regular annual statements, interim financial reports on
the form adopted by the National Association of Insurance Commissioners or in
such format as promulgated by the Commissioner;
(10) Correct corporate governance practice
deficiencies, and adopt and utilize governance practices acceptable to the
Commissioner;
(11) Provide a
business plan to the Commissioner in order to continue to transact business in
the State; or
(12) Notwithstanding
any of the other provisions of law limiting the frequency or amount of premium
rate adjustments, adjust rates for any non-life insurance product written by
the insurer that the Commissioner considers necessary to improve the financial
condition of the insurer.
If the insurer is a foreign insurer the Commissioner's order may be limited to the extent provided by statute.
(c) An insurer subject to an order under
paragraph (b) may request a hearing to review that order. All requests for
hearings and all hearings shall be conducted in a manner consistent with
O.C.G.A. ยง
33-2-17.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.