Surcharge on Premiums to Recoup Assessments; Disclosure to Insureds; Excess Surcharges, Exception Where the Expense of Collection Would Exceed the Amount of the Surcharge

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  2. Georgia Code
  3. Insurance
  4. Georgia Insurers Insolvency Pool
  5. Surcharge on Premiums to Recoup Assessments; Disclosure to Insureds; Excess Surcharges, Exception Where the Expense of Collection Would Exceed the Amount of the Surcharge

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  1. The plan adopted pursuant to Code Section 33-36-6 shall contain provisions whereby each member insurer is required to recoup over the year following the year of the assessment a sum calculated to recoup the assessments paid by the member insurer under this chapter by way of a surcharge on premiums charged for insurance policies to which this chapter applies. Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax or agents' commission.
  2. The amount of any surcharge shall be separately stated on either a billing or policy declaration sent to an insured. Member insurers who collect surcharges in excess of assessments paid pursuant to Code Section 33-36-7 for an insolvent insurer shall remit the excess to the pool as an additional assessment within 30 days after the pool has determined the amount of the excess recoupment and given notice to the member of that amount. The excess shall be applied to reduce future assessment charges in the appropriate category.
  3. The plan of operation may permit a member insurer to omit collection of the surcharge from its insureds when the expense of collecting the surcharge would exceed the amount of the surcharge. However, nothing in this Code section shall relieve the member insurer of its obligation to recoup the amount of surcharge otherwise collectable.

(Code 1981, §33-36-7.1, enacted by Ga. L. 2005, p. 563, § 16/HB 407; Ga. L. 2013, p. 141, § 33/HB 79; Ga. L. 2019, p. 386, § 129/SB 133.)

The 2019 amendment, effective July 1, 2019, substituted "this chapter" for "this article" near the end of the first sentence of subsection (a).

Editor's notes.

- Ga. L. 2005, p. 563, § 24/HB 407, not codified by the General Assembly, provides that this Code section shall apply to insolvencies which occur on or after July 1, 2005.

Ga. L. 2006, p. 887, § 1/HB 1444, not codified by the General Assembly, amended Ga. L. 2005, p. 563, § 24/HB 407, to read: "The provisions of Section 12 of this Act shall apply to insolvencies that occur on or after the effective date of this Act. All other provisions shall apply as of the effective date of this Act." Ga. L. 2005, p. 563, became effective July 1, 2005.


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