Termination of Operation of Pool as to Particular Kinds of Insurance; Proceeds Upon Termination of Operation of Pool; Expiration of Pool

  1. Law
  2. Georgia Code
  3. Insurance
  4. Georgia Insurers Insolvency Pool
  5. Termination of Operation of Pool as to Particular Kinds of Insurance; Proceeds Upon Termination of Operation of Pool; Expiration of Pool

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  1. The Commissioner shall by order terminate the operation of the insolvency pool as to any kind of insurance afforded by property or casualty insurance policies with respect to which he has found, after hearing, that there is in effect a statutory or voluntary plan which:
    1. Is a permanent plan which is adequately funded or for which adequate funding is provided; and
    2. Extends, or will extend to the Georgia policyholders and residents, protection and benefits with respect to insolvent insurers not substantially less favorable and effective to such policyholders and residents than the protection and benefits provided with respect to that kind of insurance under this chapter.
  2. The Commissioner shall by the same order authorize discontinuance of future payments by insurers to the insolvency pool with respect to the same kinds of insurance, provided that assessments and payments shall continue as necessary to liquidate covered claims of insurers adjudged insolvent prior to the order and the related expenses not covered by the other plan.
  3. In the event the operation of any account of the insolvency pool shall be so terminated as to all kinds of insurance otherwise within its scope, the pool as soon as possible after the termination shall distribute the balance of moneys and assets remaining in the account (after discharge of the functions of the pool with respect to prior insurer insolvencies not covered by such other plan, together with related expenses) to the insurers which are then writing in this state policies of the kinds of insurance covered by such account, and which had made payments into such account, pro rata upon the basis of the aggregate of the payments made by the respective insurers to the account during the period of five years preceding the date of the order. Upon completion of such distribution with respect to all of the accounts specified in Code Section 33-36-7, this chapter shall be deemed to have expired.

(Ga. L. 1970, p. 700, § 17; Ga. L. 1982, p. 3, § 33.)


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