General Requirements for Transaction of Insurance by Domestic Reciprocal Insurers

  1. Law
  2. Georgia Code
  3. Insurance
  4. Reciprocal Insurers
  5. General Requirements for Transaction of Insurance by Domestic Reciprocal Insurers

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  1. A domestic reciprocal insurer formed under this chapter, if it has otherwise complied with the applicable provisions of this title, may be authorized to transact insurance if it has and thereafter maintains surplus funds as follows:
    1. To transact property insurance, surplus funds of not less than $1.5 million; and
    2. To transact casualty insurance, surplus funds of not less than $1.5 million.
  2. In addition to surplus required to be maintained under subsection (a) of this Code section, the insurer shall have, when first authorized to transact insurance, expendable surplus in such amount as is required of a like foreign reciprocal insurer under Code Section 33-3-7.
  3. A domestic reciprocal insurer may be authorized to transact additional kinds of insurance if it has otherwise complied with the provisions of this title applicable to a domestic reciprocal insurer and possesses and so maintains surplus funds in an amount equal to the minimum paid-in capital stock required of a stock insurer for authority to transact a like combination of kinds of insurance.
  4. There shall be maintained at all times assets in cash, premium balances, or securities authorized by the laws of this state for the investment of assets of insurance companies doing a similar business in an amount equivalent to the pro rata unearned premiums or deposits of subscribers and reserves for losses outstanding and unpaid or any other liabilities of the reciprocal insurer.

(Code 1933, § 56-2107, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 1990, p. 1275, § 6.)

Editor's notes.

- Ga. L. 1990, p. 1275, § 7, not codified by the General Assembly, provided that the 1990 amendment was effective for purposes of application to new or newly admitted insurers on January 1, 1991, and effective for all other purposes on July 1, 1992.

RESEARCH REFERENCES

Am. Jur. 2d.

- 43 Am. Jur. 2d, Insurance, § 72 et seq.

C.J.S.

- 46A C.J.S., Insurance, §§ 2368 et seq.


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