Commingling of Assets Prohibited; Separation of Cells

1. Law
2. Georgia Code
3. Insurance
4. Captive Insurance Companies
5. Sponsored Captive Insurance Companies
6. Commingling of Assets Prohibited; Separation of Cells

1. In connection with the conservation, rehabilitation, or liquidation of captive insurance companies set forth in Code Section 33-41-21, including sponsored captive insurance companies, the assets and liabilities of a protected cell shall at all times be kept separate from, and shall not be commingled with, those of other protected cells and the sponsored captive insurance company except to the extent that the assets and liabilities of any one or more protected cells are determined to have not been allocated, segregated, and separated pursuant to the business plan and participant contracts approved by the Commissioner, and which are subject to the tracing provisions set forth in this article.
2. Notwithstanding the provisions of this title, in the event of the insolvency of a sponsored captive insurance company where the Commissioner determines that one or more protected cells remain solvent, the Commissioner may separate such cells from the sponsored captive insurance company and may allow, on application of the sponsored captive insurance company or participant, for the conversion of such protected cells into one or more new or existing other captive insurance companies.

(Code 1981, §33-41-105, enacted by Ga. L. 2019, p. 533, § 2-14/HB 99.)

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