Premiums Due During Pendency of Liquidation Action; Penalties for Violation; Notice; Right to Appeal

  1. Law
  2. Georgia Code
  3. Insurance
  4. Insurers Rehabilitation and Liquidation
  5. Procedure for Rehabilitation
  6. Premiums Due During Pendency of Liquidation Action; Penalties for Violation; Notice; Right to Appeal

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

    1. An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay any unpaid premium for the full policy term due the insurer at the time of the declaration of insolvency, whether earned or unearned, as shown on the records of the insurer.The liquidator shall also have the right to recover from such person any part of an unearned premium that represents commission of such person. Credits or setoffs or both shall not be allowed to an agent, broker, or premium finance company for any amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured.
    2. An insured shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency, as shown on the records of the insurer.
  2. Upon satisfactory evidence of a violation of this Code section, the Commissioner may pursue either one or both of the following courses of action:
    1. Suspend, revoke, or refuse to renew the licenses of such offending party or parties; or
    2. Impose a penalty of not more than $5,000.00 for each and every act in violation of this Code section by said party or parties.
  3. Before the Commissioner shall take any action as provided in subsection (b) of this Code section, written notice shall be provided to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation and fixing a time and place, at least ten days thereafter, when a hearing on the matter shall be held. After such hearing, or upon failure of the accused to appear at such hearing, the Commissioner, if he shall find such violation, shall impose such of the penalties under subsection (b) of this Code section as he deems advisable.
  4. When the Commissioner shall take action in any or all of the ways set out in subsection (b) of this Code section, the party aggrieved may appeal from said action to the superior court.

(Code 1981, §33-37-32, enacted by Ga. L. 1991, p. 1424, § 7.)


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