Maintenance of Principal Place of Business and Records; Maintenance of Assets Within State; Removal of Records or Assets From State Without Approval

  1. Law
  2. Georgia Code
  3. Insurance
  4. Domestic Stock and Mutual Insurers
  5. General Provisions
  6. Maintenance of Principal Place of Business and Records; Maintenance of Assets Within State; Removal of Records or Assets From State Without Approval

Checkout our iOS App for a better way to browser and research.

  1. Every domestic insurer shall have and maintain its principal place of business in this state, and shall keep in its principal place of business complete records of the assets, transactions, and affairs in accordance with the methods and systems which are customary or suitable as to the kind or kinds of insurance transacted.
  2. Every domestic insurer shall have and maintain its assets in this state, except as to:
    1. Real property and personal property appurtenant thereto lawfully owned by the insurer and located outside of this state; and
    2. Any property of the insurer as may be customary, necessary, and convenient to enable and facilitate the operation of its branch offices and regional home offices located outside of this state, as referred to in subsection (d) of this Code section.
  3. Removal of all or a material part of the records or assets of a domestic insurer from this state except pursuant to a plan of merger or consolidation approved by the Commissioner under this title, or for any reasonable purposes and periods of time as may be approved by the Commissioner in writing in advance of any removal or concealment of such records or assets or material part thereof from the Commissioner is prohibited. Any insurer or representative of an insurer who removes or attempts to remove such records or assets or any material part thereof from the home office or other place of business or of safekeeping of the insurer in this state with the intent to remove the same from this state or conceals or attempts to conceal the same from the Commissioner in violation of this subsection shall have its corporate charter forfeited and its certificate of authority to do business shall be revoked. Upon any removal or attempted removal of the records or assets or upon retention of the records or assets or material part of the records or assets outside this state, beyond the period specified in the Commissioner's consent under which the records were permitted to be removed, or upon concealment of or attempts to conceal records or assets in violation of this subsection, the Commissioner may institute proceedings against the insurer pursuant to Chapter 37 of this title.
  4. This Code section shall not be deemed to prohibit or prevent an insurer from:
    1. Establishing and maintaining branch offices or regional home offices in other states or foreign countries where necessary or convenient to the transaction of its business and keeping therein the detailed records and assets customary and necessary for the servicing of the insurance in force in the jurisdiction served by such an office as long as the records and assets are made readily available at such office for examination by the Commissioner at his request; or
    2. Having, depositing, or transmitting funds and assets of the insurer in or to jurisdictions outside of this state as reasonably and customarily required in the regular course of its business.

(Code 1933, § 56-1522, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 1980, p. 1108, § 7.)

OPINIONS OF THE ATTORNEY GENERAL

Principal place of business is location within state where governing powers of insurer are exercised and where attendant business activities as an insurer are actually and regularly conducted. 1976 Op. Att'y Gen. No. 76-67.

Principal place of business must be at designated Georgia location.

- To comply with this section, a domestic insurer must establish and maintain its principal office at a designated situs within the State of Georgia where the governing powers of the insurer are exercised and where a substantial amount of the attendant business activities are regularly conducted; it must keep in that office all records of transactions and correspondence that pertain to each policy of insurance issued. 1976 Op. Att'y Gen. No. 76-67.

A domestic insurance company cannot remove its home office to another state; the Insurance Commissioner is without power to approve such a removal. 1962 Op. Att'y Gen. p. 287.


Download our app to see the most-to-date content.