Construction and Purpose of Chapter

1. Law
2. Georgia Code
3. Insurance
4. Insurers Rehabilitation and Liquidation
5. General Provisions
6. Construction and Purpose of Chapter

1. This chapter shall be known and may be cited as the "Insurers Rehabilitation and Liquidation Act."
2. This chapter shall not be interpreted to limit the powers granted the Commissioner by other provisions of law.
3. This chapter shall be liberally construed to effect the purpose stated in subsection (d) of this Code section.
4. The purpose of this chapter is the protection of the interests of insureds, claimants, creditors, and the public generally, with minimum interference with the normal prerogatives of the owners and managers of insurers, through:
   1. Early detection of any potentially dangerous condition in an insurer and prompt application of appropriate corrective measures;
   2. Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry;
   3. Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation;
   4. Equitable apportionment of any unavoidable loss;
   5. Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process and by extending the scope of personal jurisdiction over debtors of the insurer outside this state;
   6. Regulation of the insurance business by the impact of the law relating to delinquency procedures and substantive rules on the entire insurance business; and
   7. Providing for a comprehensive scheme for the rehabilitation and liquidation of insurance companies and those subject to this chapter as part of the regulation of the business of insurance, insurance industry, and insurers in this state. Proceedings in cases of insurer insolvency and delinquency are deemed an integral aspect of the business of insurance and are of vital public interest and concern.

(Code 1981, §33-37-1, enacted by Ga. L. 1991, p. 1424, § 7.)

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 1991, "interference" was substituted for "interferance" in subsection (d).

Law reviews.

- For note, "Misrepresentations and Nondisclosures in the Insurance Application," see 13 Ga. L. Rev. 876 (1979).

JUDICIAL DECISIONS

Trial court required to grant stay based on order of New York court.

- Because a New York Order of Rehabilitation enjoined any actions, lawsuits, or proceedings against an insurance company, pursuant to O.C.G.A. § 33-37-23(a), the trial court was required to grant a stay as to proceedings against the insurance company in order to give full faith and credit to the injunction ordered by the New York court. Aon Risk Servs. v. Commercial & Military Sys. Co., 270 Ga. App. 510, 607 S.E.2d 157 (2004).

Claims in common with the insolvent trust fund versus personal claims.

- Trial court erred in dismissing the plaintiffs' breach of contract, misrepresentation, and other claims against a workers compensation trust fund because while the court properly concluded that the Georgia Insurance Commissioner, as an appointed receiver, had the exclusive authority to prosecute legal claims that were common to the insolvent trust fund, the court erred in finding that plaintiffs did not have standing to prosecute claims that were personal in nature and not common to the trust fund. Superior Roofing Co. of Ga., Inc. v. Am. Prof'l Risk Servs., 323 Ga. App. 416, 744 S.E.2d 400 (2013).

Cited in Georgia Insurers Insolvency Pool v. Dubose, 349 Ga. App. 238, 825 S.E.2d 606 (2019).

RESEARCH REFERENCES

Am. Jur. 2d.

- 43 Am. Jur. 2d, Insurance, § 83 et seq.

C.J.S.

- 44 C.J.S., Insurance, §§ 127, 190, 226 et seq., 249 et seq.

ALR.

- Validity, construction, and application of Uniform Insurers Liquidation Act, 44 A.L.R.5th 683.

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