Georgia House of Representatives - 1995/1996 Sessions

HB 1909 - Insurers; additional investments; Israel

Page Numbers - 1/ 2/ 3

Code Sections - 33-11-5/ 33-11-8/ 33-11-12

1. Teper  61st


House Comm: Ins        /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
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               House          Action         Senate                                                 
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              3/18/96  Read 1st Time                                                                
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Rules Suspended to Introduce                                                                        
                                                                                                    
Code Sections amended:                                                                              


HB 1909                                            LC 25 0382






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Chapter 11 of Title 33 of the Official Code of
  1- 2  Georgia Annotated, relating to investments of insurers, so
  1- 3  as to authorize certain additional investments; to repeal
  1- 4  conflicting laws; and for other purposes.

  1- 5       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1- 6  Chapter 11 of Title 33 of the Official Code of Georgia
  1- 7  Annotated, relating to investments of insurers, is amended
  1- 8  by striking Code Section 33-11-5, relating to required
  1- 9  investments and limitations, and inserting in lieu thereof a
  1-10  new Code Section 33-11-5 to read as follows:

  1-11    "33-11-5. (Index)

  1-12    An insurer shall invest in or hold as admitted assets
  1-13    categories of investments that fall within the applicable
  1-14    limits listed in paragraphs (1) through (3) of this Code
  1-15    section:

  1-16      (1) One person. Any insurer shall not, except with the
  1-17      Commissioner's consent, have at any one time any
  1-18      combinations of investments in or loans upon the
  1-19      security of the obligations, property, or securities of
  1-20      any one person, institution, corporation, or municipal
  1-21      corporation, aggregating an amount in excess of 10
  1-22      percent of the insurer's admitted assets. This
  1-23      restriction shall not apply as to general obligations of
  1-24      the United States of America or of the government of
  1-25      Canada or of the government of Israel or of any state,
  1-26      nor include policy loans under this chapter;

  1-27      (2) Voting stock. An insurer shall not invest in or hold
  1-28      at any one time more than 10 percent of the outstanding
  1-29      voting stock of any corporation, except with the
  1-30      Commissioner's consent. This provision does not apply as
  1-31      to stock of a substantially wholly owned insurance
  1-32      subsidiary of the insurer, but the prior written consent



                                 -1- (Index)

                                                  LC 25 0382

  2- 1      of the Commissioner shall be required for investment in
  2- 2      a subsidiary;

  2- 3      (3) Minimum capital. An insurer shall invest and
  2- 4      maintain invested funds not less in amount than the
  2- 5      minimum paid-in capital stock required under this title
  2- 6      of a domestic stock insurer transacting like kinds of
  2- 7      insurance, only in the following:

  2- 8        (A) Cash;

  2- 9        (B) Certificates of deposit or similar certificates or
  2-10        evidences of deposit in banks and trust companies to
  2-11        the extent that the certificates or deposits are
  2-12        insured by the Federal Deposit Insurance Corporation;

  2-13        (C) Savings accounts, certificates of deposit, or
  2-14        similar certificates or evidences of deposit in
  2-15        savings and loan associations and building and loan
  2-16        associations to the extent that the same are insured
  2-17        by the Federal Savings and Loan Insurance Corporation;

  2-18        (D) The securities provided for under Code Section
  2-19        33-11-9;

  2-20        (E) The securities provided for under Code Section
  2-21        33-11-11;

  2-22        (F) The securities provided for under Code Section
  2-23        33-11-12;

  2-24        (G) The securities provided for under Code Section
  2-25        33-11-13; and

  2-26        (H) The securities provided for under Code Section
  2-27        33-11-25;

  2-28      (4) Investment of reserves. In addition to the
  2-29      investments in paragraph (3) of this Code section, an
  2-30      insurer shall invest and keep invested its funds in
  2-31      amounts not less than 100 percent of the reserves
  2-32      provided for by this title, in cash or the securities or
  2-33      investments authorized under this chapter; provided,
  2-34      however, that an amount equal to not less than 75
  2-35      percent of the reserves shall be invested in securities
  2-36      other than common stocks;

  2-37      (5) Other specific limits. Limits as to investments in
  2-38      the category of real estate shall be as provided in Code
  2-39      Sections 33-11-29 through 33-11-32; and other specific




                                 -2- (Index)

                                                  LC 25 0382

  3- 1      limits shall apply as stated in Code sections dealing
  3- 2      with other respective kinds of investments."

                         SECTION 2.

  3- 3  Said chapter is further amended by striking Code Section
  3- 4  33-11-8, relating to authorized investments in foreign
  3- 5  securities, and inserting in lieu thereof a new Code Section
  3- 6  33-11-8 to read as follows:

  3- 7    "33-11-8. (Index)

  3- 8    An insurer authorized to transact insurance in a foreign
  3- 9    country may make investments, in a manner consistent with
  3-10    the laws of such country, in securities or other
  3-11    investments within such foreign country which are similar
  3-12    in characteristics and quality to like investments
  3-13    required pursuant to this chapter for investments in the
  3-14    United States of America. The aggregate amount of the
  3-15    investments must not exceed the amount which is customary
  3-16    and necessary for the servicing of the insurance which the
  3-17    insurer has in force in the foreign country. Canadian or
  3-18    Israeli securities eligible for investment under this
  3-19    chapter are not subject to this Code section."

                         SECTION 3.

  3-20  Said chapter is further amended by striking Code Section
  3-21  33-11-12, relating to authorized investments in bonds,
  3-22  notes, etc., of states of the United States, the District of
  3-23  Columbia, or the government of Canada, and inserting in lieu
  3-24  thereof a new Code Section 33-11-12 to read as follows:

  3-25    "33-11-12. (Index)

  3-26    An insurer may invest in bonds, notes, warrants, and other
  3-27    securities not in default which are the direct obligations
  3-28    of any state of the United States or of the District of
  3-29    Columbia, or of the government of Canada or any province
  3-30    of Canada, or of the government of Israel or for which the
  3-31    full faith and credit of such state, district, government,
  3-32    or province has been pledged for the payment of principal
  3-33    and interest."

                         SECTION 4.

  3-34  All laws and parts of laws in conflict with this Act are
  3-35  repealed.





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