Release of Deposits Generally

  1. Law
  2. Georgia Code
  3. Insurance
  4. Administration of Deposits
  5. Release of Deposits Generally

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Any deposit made in this state under this title shall be released:

  1. To the insurer upon extinguishment by reinsurance or otherwise of all liability of the insurer for the security of which the deposit is held;
  2. To the insurer to the extent such deposit is in excess of the amount required; or
  3. Upon proper order of a court of competent jurisdiction, to the receiver, conservator, rehabilitator, or liquidator of the insurer or to any other properly designated official or officials who succeed to the management and control of the insurer's assets.

(Ga. L. 1887, p. 113, § 4; Civil Code 1895, §§ 2039, 2041; Civil Code 1910, §§ 2423, 2425; Code 1933, §§ 56-323, 56-324; Code 1933, § 56-1108, enacted by Ga. L. 1960, p. 289, § 1.)

OPINIONS OF THE ATTORNEY GENERAL

Paragraph (1) of former Code 1933, § 56-1108 ( see O.C.G.A. § 33-12-8) and former Code 1933, § 56-310 (see O.C.G.A. 33-3-9) are part of the general scheme of Georgia law to protect Georgia citizens in the collection of just claims against foreign corporations which are dissolved and which have their principal assets in other states. 1965-66 Op. Att'y Gen. 66-25.

Paragraph (1) requires insurer to extinguish liability which may be done by reinsurance.

- Paragraph (1) of this section was intended to mean that an insurer, before being allowed to take down its deposits, must extinguish, that is, put an end to all of its liability for the security of which the deposit is held and that, in addition to any other means by which this might be accomplished, it could also be accomplished by the means of reinsurance; to be accomplished by reinsurance would require a reinsurance contract whereby a second insurer is substituted for the first or withdrawing insurer, with the consent of the insured, which, of course, would release the first insurer from all liability to the insured. 1965-66 Op. Att'y Gen. No. 66-25.

If surviving corporation has required amounts on deposit, acquired company's deposits may be released.

- Where the surviving company under a merger agreement has on deposit the amounts required by statute for the various classes of insurance which it is licensed to write, the deposit of the acquired company becomes a surplus deposit which is no longer required and may be released. 1958-59 Op. Att'y Gen. p. 198.


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