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HB 26 - Insurance; state of entry to U. S. for alien insurers

Harbin, Ben (113th)

Status Summary	HC:	Ins	SC:	I&L	FR:	01/14/99	LA:	04/28/99	Signed by Governor

First Reader Summary

A BILL to amend Title 33 of the Official Code of Georgia Annotated, relating to insurance, so as to authorize and provide for use of this state as a state of entry into the United States by alien insurers for the purpose of transacting insurance in the United States through a United States branch; and for other purposes.

Code Sections - 33-3-8/ 33-3-13/ 33-3-30

HB 26                                              LC 25 1096 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Title 33 of the Official Code of Georgia Annotated, 
  1- 2  relating to insurance, so as to authorize and provide for 
  1- 3  use of this state as a state of entry into the United States 
  1- 4  by alien insurers for the purpose of transacting insurance 
  1- 5  in the United States through a United States branch; to 
  1- 6  change certain provisions relating to requirements as to 
  1- 7  deposit of securities generally; to change certain 
  1- 8  provisions relating to information required in or attached 
  1- 9  to application for certificate of authority; to change 
  1-10  certain provisions relating to retaliation; to require 
  1-11  certain alien insurers to maintain principal places of 
  1-12  business and related records in this state; to change 
  1-13  certain provisions relating to investments of foreign and 
  1-14  alien insurers and their places of domicile; to repeal 
  1-15  conflicting laws; and for other purposes. 
 
  1-16       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-17                           SECTION 1. 
 
  1-18  Title 33 of the Official Code of Georgia Annotated, relating 
  1-19  to insurance, is amended by striking Code Section 33-3-8, 
  1-20  relating to requirements as to deposit of securities 
  1-21  generally, and inserting in lieu thereof the following: 
 
  1-22    "33-3-8. 
 
  1-23    (a) The Commissioner shall not issue a certificate of 
  1-24    authority to transact insurance to any insurer unless the 
  1-25    insurer has deposited in trust with this state securities 
  1-26    eligible for the investment of capital funds of domestic 
  1-27    insurers under this title in an amount not less than that 
  1-28    required in subsection (b) of this Code section. This Code 
  1-29    section does not apply to farmers' mutual fire insurance 
  1-30    companies. 
 
  1-31      (b)(1) The Except as otherwise provided in this 
  1-32      subsection, the amount of the deposit required under 
  1-33      this Code section  for a certificate to transact any one 
  1-34      class of insurance shall be $100,000.00; to transact 
 
 
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  2- 1      each additional class of insurance, the amount of 
  2- 2      deposit shall be $25,000.00, subject to the limitation 
  2- 3      that not more than $200,000.00 total deposit shall be 
  2- 4      required for any combination of classes. 
 
  2- 5      (2) As to any foreign insurers insurer, in lieu of such 
  2- 6      deposit or part of such deposit in this state, the 
  2- 7      Commissioner shall accept the current certificate in 
  2- 8      proper form of the public official having supervision 
  2- 9      over insurers in any other state to the effect that a 
  2-10      like deposit or part of like deposit by such insurer is 
  2-11      being maintained in public custody in such state in 
  2-12      trust for the purpose, among other reasonable purposes, 
  2-13      of protection of policyholders and creditors or of the 
  2-14      protection of all the insurer's policyholders or of all 
  2-15      of its policyholders and obligees. 
 
  2-16      (3) As to any alien insurers insurer, other than a title 
  2-17      insurers insurer, which has entered through and the 
  2-18      United States branch of which is licensed to transact 
  2-19      insurance in another state, in lieu of such deposit or 
  2-20      part thereof in this state, the Commissioner shall 
  2-21      accept the certificate of the official having 
  2-22      supervision over insurance of another such other state 
  2-23      in the United States, given under his or her hand and 
  2-24      seal, that the insurer maintains within the United 
  2-25      States by way of deposits with public depositories, or 
  2-26      in trust institutions within the United States approved 
  2-27      by such official, assets available for discharge of its 
  2-28      United States insurance obligations, which assets shall 
  2-29      be in an amount not less than the outstanding 
  2-30      liabilities of the insurer arising out of its insurance 
  2-31      transactions in the United States together with the 
  2-32      larger of the following sums: the largest deposit 
  2-33      required by this title to be made in this state by any 
  2-34      type of domestic insurer transacting like kinds of 
  2-35      insurance or $300,000.00. 
 
  2-36      (4) As to any alien insurer entering through this state 
  2-37      to transact insurance in the United States through a 
  2-38      United States branch, such insurer shall deposit in 
  2-39      accordance with Chapter 12 of this title assets 
  2-40      available for discharge of its United States insurance 
  2-41      obligations, which assets shall be in an amount not less 
  2-42      than the outstanding liabilities of the insurer arising 
  2-43      out of its insurance transactions in the United States 
  2-44      together with the larger of the following sums: the 
 
 
 
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  3- 1      largest deposit required by this title to be made in 
  3- 2      this state by any type of domestic insurer transacting 
  3- 3      like kinds of insurance or $300,000.00." 
 
  3- 4                           SECTION 2. 
 
  3- 5  Said title is further amended by striking Code Section 
  3- 6  33-3-13, relating to information required in or attached to 
  3- 7  application for certificate of authority, and inserting in 
  3- 8  lieu thereof the following: 
 
  3- 9    "33-3-13. 
 
  3-10    To apply for an original certificate of authority an 
  3-11    insurer shall file with the Commissioner its application 
  3-12    therefor showing its name, location of its home office or 
  3-13    its existing or proposed principal office in the United 
  3-14    States if an alien insurer, kinds of insurance to be 
  3-15    transacted, date of organization or incorporation, form of 
  3-16    organization, state or country of domicile, the names and 
  3-17    addresses of all general officers of the company with the 
  3-18    number of shares of capital stock of the company held by 
  3-19    or for each such general officer or by others for his or 
  3-20    her benefit, and the percentage of the total capital stock 
  3-21    of the company held by each such general officer, the date 
  3-22    on which the company began to do business, the states in 
  3-23    which it is admitted to do business, and such additional 
  3-24    information as the Commissioner may require, together with 
  3-25    the following applicable documents: 
 
  3-26      (1) A copy of its corporate charter with all amendments 
  3-27      thereto certified by the public officer with whom the 
  3-28      originals are on file in the state or country of 
  3-29      domicile; 
 
  3-30      (2) A copy of its bylaws, as amended, certified by its 
  3-31      secretary or other officer having custody thereof; 
 
  3-32      (3) If a foreign or alien insurer, a copy of its annual 
  3-33      statement as of December 31 of the preceding year in a 
  3-34      form approved for current use by the Commissioner and 
  3-35      certified by two officers of the company. The annual 
  3-36      statement of an alien insurer which has entered through 
  3-37      and the United States branch of which is licensed to 
  3-38      transact insurance in another state shall relate only to 
  3-39      the transactions and affairs in the United States unless 
  3-40      the Commissioner requires otherwise; 
 
  3-41      (4) A copy of report of the last examination, if any, 
  3-42      made of the insurer, certified by the insurance 
 
 
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  4- 1      supervisory official of its state or country of domicile 
  4- 2      or of entry into the United States; 
 
  4- 3      (5) If a foreign or alien insurer, a copy of the 
  4- 4      appointment of the Commissioner as its attorney to 
  4- 5      receive service of legal process; 
 
  4- 6      (6) If a foreign or alien insurer, a certificate of the 
  4- 7      public official having supervision of insurance in its 
  4- 8      state or country of domicile showing that it is 
  4- 9      authorized to transact the kinds of insurance proposed 
  4-10      to be transacted in Georgia; 
 
  4-11      (7) If an alien insurer, a copy of the appointment and 
  4-12      authority of its United States manager certified by its 
  4-13      officer having custody of its records; and 
 
  4-14      (8) If a foreign or alien insurer, certificate as to 
  4-15      deposit if to be tendered pursuant to Code Section 
  4-16      33-3-8; and 
 
  4-17      (9) If an alien insurer entering through this state to 
  4-18      transact insurance in the United States through a United 
  4-19      States branch, an English language translation, as 
  4-20      necessary, of any of the documents required under this 
  4-21      Code section." 
 
  4-22                           SECTION 3. 
 
  4-23  Said title is further amended by striking subsection (c) of 
  4-24  Code Section 33-3-26, relating to retaliation, and inserting 
  4-25  in lieu thereof the following: 
 
  4-26    "(c) For the purposes of this Code section, the domicile 
  4-27    of an alien insurer other than insurers formed under the 
  4-28    laws of Canada shall be that state designated by the 
  4-29    insurer in writing filed with the Commissioner at the time 
  4-30    of admission to this state and may be any one of the 
  4-31    following states: 
 
  4-32      (1) This state if the insurer is entering through this 
  4-33      state to transact insurance in the United States through 
  4-34      a United States branch; 
 
  4-35      (1)(2) That in which the insurer was first authorized to 
  4-36      transact insurance; 
 
  4-37      (2)(3) That in which is located the insurer's principal 
  4-38      place of business in the United States; or 
 
 
 
 
 
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  5- 1      (3)(4) That in which is held the larger deposit of 
  5- 2      trusteed assets of the insurer for the protection of its 
  5- 3      policyholders and creditors in the United States." 
 
  5- 4                           SECTION 4. 
 
  5- 5  Said title is further amended by adding a new Code Section 
  5- 6  33-3-30 to read as follows: 
 
  5- 7    "33-3-30. 
 
  5- 8    (a) Each alien insurer which enters through this state to 
  5- 9    transact insurance in the United States through a United 
  5-10    States branch shall establish and maintain in this state 
  5-11    such insurer's principal place of business in the United 
  5-12    States, and shall keep in such principal place of business 
  5-13    complete records of the assets, transactions, and affairs 
  5-14    in accordance with the methods and systems which are 
  5-15    customary or suitable as to the kind or kinds of insurance 
  5-16    transacted in the United States. 
 
  5-17    (b) Concealment from the Commissioner or removal from this 
  5-18    state of any material part of the records required to be 
  5-19    kept in this state under subsection (a) of this Code 
  5-20    section, except for any reasonable purposes and periods of 
  5-21    time as may be approved by the Commissioner in writing in 
  5-22    advance of such removal, is prohibited.  The certificate 
  5-23    of authority to do business of any alien insurer which 
  5-24    removes or attempts to remove any material part of such 
  5-25    records from the principal place of business of the 
  5-26    insurer in this state with the intent to remove the same 
  5-27    from this state or conceals or attempts to conceal the 
  5-28    same from the Commissioner in violation of this subsection 
  5-29    shall be revoked.  Upon any removal or attempted removal 
  5-30    of such records or upon retention of such records or 
  5-31    material part of such records outside this state beyond 
  5-32    the period specified in the Commissioner's consent under 
  5-33    which such records were permitted to be removed or upon 
  5-34    concealment of or attempts to conceal such records in 
  5-35    violation of this subsection, the Commissioner may 
  5-36    institute proceedings against the insurer pursuant to 
  5-37    Chapter 37 of this title. 
 
  5-38    (c) This Code section shall not be deemed to prohibit or 
  5-39    prevent an alien insurer from establishing and maintaining 
  5-40    branch offices or regional home offices in other states 
  5-41    where necessary or convenient to the transaction of its 
  5-42    business and keeping therein the detailed records 
  5-43    customary and necessary for the servicing of the insurance 
 
 
                                 -5- 
 
 
 
  6- 1    in force in the jurisdiction served by such an office as 
  6- 2    long as such records are made readily available at such 
  6- 3    office for examination by the Commissioner at his 
  6- 4    request." 
 
  6- 5                           SECTION 5. 
 
  6- 6  Said title is further amended by striking subsection (b) of 
  6- 7  Code Section 33-11-42, relating to investments of foreign 
  6- 8  and alien insurers and their places of domicile, and 
  6- 9  inserting in lieu thereof the following: 
 
  6-10    "(b) For the purposes of this Code section the domicile of 
  6-11    an alien insurer, other than insurers formed under the 
  6-12    laws of Canada, shall be that state designated by the 
  6-13    insurer in writing filed with the Commissioner at time of 
  6-14    admission to this state or within six months after January 
  6-15    1, 1961, whichever date is the later, and may be any one 
  6-16    of the following states: 
 
  6-17      (1) This state if the insurer is entering through this 
  6-18      state to transact insurance in the United States through 
  6-19      a United States branch; 
 
  6-20      (1)(2) That in which the insurer was first authorized to 
  6-21      transact insurance; 
 
  6-22      (2)(3) That in which is located the insurer's principal 
  6-23      place of business in the United States; or 
 
  6-24      (3)(4) That in which is held the larger deposits of 
  6-25      trusteed assets of the insurer for the protection of its 
  6-26      policyholders and creditors in the United States." 
 
  6-27                           SECTION 6. 
 
  6-28  All laws and parts of laws in conflict with this Act are 
  6-29  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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