25 LC 52 9000/AP
House Bill 410 (AS PASSED HOUSE AND SENATE)
By: Representatives DeLoach of the 167
th
, Lumsden of the 12
th
, and Williamson of the 112
th
A BILL TO BE ENTITLED
AN ACT
To amend Title 33 of the Official Code of Georgia Annotated, relating to insurance, so as to
1
provide for efficiency in the practices of the Department of Insurance; to revise the statutory2
deposit requirement for foreign insurers; to remove fees for branch licensees; to revise3
application requirements for a domestic stock and mutual insurer; to remove the publication4
requirement for application, amendments, and surrenders for such insurer; to remove such5
publication requirement for charters, consolidations, and mergers of fraternal benefit6
societies; to revise application requirements for farmers' mutual fire insurance companies;7
to remove the licensure requirement for agency branches; to provide for biennial renewals8
for agency licenses to be based on the origination month of the agency; to require a license9
to state the legal name of the licensee; to provide for related matters; to provide for an10
effective date; to repeal conflicting laws; and for other purposes.11
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12
SECTION 1.13
Title 33 of the Official Code of Georgia Annotated, relating to insurance, is amended in14
Chapter 3, relating to authorization and general requirements for transaction of insurance, by15
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revising subsection (b) of Code Section 33-3-8, relating to requirements as to deposit of
16
securities generally, as follows:17
"(b)(1) Except as otherwise provided in this subsection, the amount of the deposit18
required under this Code section for a certificate to transact any one class of insurance19
shall be $100,000.00; to transact each additional class of insurance, the amount of deposit20
shall be $25,000.00, subject to the limitation that not more than $200,000.00 total deposit21
shall be required for any combination of classes.22
(2) As to any foreign insurer, in lieu of such deposit or part of such deposit in this state,23
the Commissioner shall accept the current certificate in proper form of the public official24
having supervision over insurers in any other state to the effect that a like deposit or part25
of like deposit by such insurer is being maintained in public custody in such state in trust26
for the purpose, among other reasonable purposes, of protection of policyholders and
27
creditors or of the protection of all the insurer's policyholders or of all of its policyholders28
and obligees.29
(3) As to any alien insurer, other than a title insurer, which has entered through and the30
United States branch of which is licensed to transact insurance in another state, in lieu of31
such deposit or part thereof in this state, the Commissioner shall accept the certificate of32
the official having supervision over insurance of such other state in the United States,33
given under his or her hand and seal, that the insurer maintains within the United States34
by way of deposits with public depositories, or in trust institutions within the United35
States approved by such official, assets available for discharge of its United States36
insurance obligations, which assets shall be in an amount not less than the outstanding37
liabilities of the insurer arising out of its insurance transactions in the United States38
together with the larger of the following sums: the largest deposit required by this title39
to be made in this state by any type of domestic insurer transacting like kinds of insurance40
or $300,000.00.41
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(4) As to any alien insurer entering through this state to transact insurance in the United
42
States through a United States branch, such insurer shall deposit in accordance with43
Chapter 12 of this title assets available for discharge of its United States insurance44
obligations, which assets shall be in an amount not less than the outstanding liabilities of45
the insurer arising out of its insurance transactions in the United States together with the46
larger of the following sums: the largest deposit required by this title to be made in this47
state by any type of domestic insurer transacting like kinds of insurance or $300,000.00."48
SECTION 2.49
Said title is further amended in Chapter 8, relating to fees and taxes, by repealing50
subparagraphs (B.1) and (B.2) of paragraph (1) of Code Section 33-8-1, relating to fees and51
charges generally.52
SECTION 3.53
Said title is further amended in Chapter 14, relating to domestic stock and mutual insurers,54
by revising Code Section 33-14-5, relating to filing of application for charter, fee,55
certification and publication of application, and approval or disapproval of charter, as56
follows:57
"33-14-5.58
(a) The application for charter with any and all exhibits that may be included with the59
application shall be filed in triplicate
in the office of the Commissioner of Insurance and60
a fee of $100.00 shall be paid to the Commissioner to be paid by him or her into the state61
treasury. The Commissioner shall not receive the application until the fee shall be is paid.62
(b) Reserved. Immediately upon receipt of the triplicate copies of the application, with63
any and all exhibits included with the application, the Commissioner shall certify one of64
the copies of the application and deliver the same to the applicants and the same shall be65
published by the applicants once a week for four weeks in the newspaper in which is66
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published the legal advertisements of the county where the principal office of the company67
is to be located. When the application with any and all exhibits attached to it shall have68
been published once a week for four weeks, the applicants may apply to the judge of the69
probate court of the county to certify the fact of such publication, which certificate shall70
be filed by the applicants in the office of the Commissioner of Insurance.71
(c) The Commissioner shall approve or disapprove the application within 45 days of the72
date the application is received by the Commissioner.73
(d) The Commissioner shall examine the application to determine whether the charter, if74
granted, will enable the insurer to comply with the applicable insurance laws of this state;75
and, if the Commissioner finds that the charter, if granted, will enable the insurer to comply76
with the applicable provisions of law for carrying on the business for which incorporation77
is sought, the Commissioner shall issue under his or her hand and official seal a certificate78
approving the granting of the charter for such insurer and shall transmit a copy of the79
certificate of approval to the Secretary of State.80
(e) If the Commissioner finds that the proposed application for a charter does not comply81
with the law, or that the corporation, if organized, could not meet the requirements for a82
certificate of authority as set forth in this chapter or any other provision of this title, the83
Commissioner shall refuse to approve the application for charter and shall notify the84
incorporators in writing, as to his or her reasons for such failure to approve; and the85
Commissioner shall issue under his or her hand and official seal a certificate disapproving86
the granting of the charter for such insurer."87
SECTION 4.88
Said title is further amended in said chapter by revising Code Section 33-14-6, relating to89
grant of corporate powers and privileges, issuance of certificate of incorporation, recordation90
of documents, and appointment of attorney for acceptance of service of process, as follows:91
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"33-14-6.
92
(a) All corporate powers and privileges to insurance companies shall be issued and granted93
by the Secretary of State upon the terms, liabilities, and restrictions of and subject to this94
title and the laws and Constitution of this state. If from any cause the Secretary of State95
should be
is disqualified from issuing and granting said powers, the duties required by this96
title to be performed by the Secretary of State shall be performed by the Commissioner of97
Insurance.98
(b) When the certificate of the judge of the probate court as to the fact of publication of99
the application for charter and the certificate of the Commissioner as to his or her approval100
of the application for charter shall have been is received in the office of the Secretary of101
State, the Secretary of State shall issue to the corporation under the seal of the state a102
certificate of incorporation. The corporation shall not transact business as an insurer until103
it has applied for and received from the Commissioner a certificate of authority as provided104
by this title.105
(c) The Secretary of State shall record the application for charter, the certificate of106
approval of the Commissioner, the certificate of the judge of the probate court as to107
publication, and the certificate of incorporation.108
(d) No corporation shall directly or indirectly take risks or transact any business of109
insurance in this state by any agent or agents in this state until it shall have has appointed110
an attorney in this state on whom process of law can be served and filed in the office of the111
Commissioner a written instrument duly signed and sealed certifying such appointment112
which shall continue until another attorney shall be is substituted. Any process issued by113
any court of record in this state and served upon the attorney by the proper officer of the114
county in which the attorney may reside or may be found shall be deemed a sufficient115
service of process upon the company, but service of process upon the company may also116
be made in any other manner provided by law. Any violation of this subsection shall117
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subject the party violating this subsection to a penalty of not less than $100.00 nor more
118
than $500.00."119
SECTION 5.120
Said title is further amended in said chapter by revising Code Section 33-14-8, relating to121
procedures for amendment or renewal of charter, as follows:122
"33-14-8.123
(a) A domestic insurer may amend its charter for any lawful purpose by written124
authorization by the holders of a majority of the voting power of its outstanding capital125
stock, by members if a mutual insurer, or by affirmative vote of such a majority voting at126
a lawful meeting of stockholders or members of which the notice given to stockholders or127
members included prior notice of not less than ten days of the proposal to amend.128
(b) Upon authorization of such an amendment, the insurer shall file in the office of the129
Commissioner of Insurance an application asking that its charter be so amended and a fee130
of $50.00 shall be paid to the Commissioner to be transmitted by him or her into the state131
treasury; and the Commissioner shall not receive said application until said fee shall be
is132
paid. The application with any and all exhibits that may be included shall be filed in133
triplicate, and signed with the corporate name and under the corporate seal, and shall state:134
(1) The name and character of the corporation, and the city or town, and county in this135
state in which is located its principal place of business;136
(2) The date of its original charter and any and all amendments to the charter, and the137
date or dates of renewal of the charter; and138
(3)(A) That it desires an amendment to its charter and the purpose of said amendment;.139
(B) There shall be annexed to the application a certificate in triplicate under the140
corporate seal of the insurer and executed by the insurer's president or vice-president141
vice president and attested to by the secretary or assistant secretary under the seal of the142
corporation, setting forth that the amendment has been authorized in writing by the143
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holders of a majority of the voting power of the outstanding capital stock, by members
144
if a mutual insurer, or by affirmative vote of such a majority voting at a lawful meeting145
of stockholders or members of which the notice given to stockholders or members146
included prior notice of not less than ten days of the proposal to amend.147
(c) Immediately upon receipt of the triplicate copies of the application, with any and all
148
exhibits included with the application, the Commissioner shall certify one of the copies of149
the application and deliver the same to the applicants and the same shall be published by150
the applicants once a week for four weeks in the newspaper in which is published the legal151
advertisements of the county where the principal office of said company is to be located. 152
When the application, with any and all exhibits attached to it, shall have been published153
once a week for four weeks, the applicants may apply to the judge of the probate court of154
the county to certify the fact of such publication, which certificate shall be filed by the155
applicants in the office of the Commissioner. The Commissioner shall approve or156
disapprove the application within 45 days of the date the application is received by him or157
her.158
(d) No amendment shall be granted which will reduce authorized capital of a stock insurer159
below the amount required by this title for the kinds of insurance thereafter to be160
transacted; and no amendment shall reduce the surplus of a mutual insurer below the161
amount required by this title for the kinds of insurance thereafter to be transacted.162
(e) If an amendment of the charter would reduce the authorized capital stock of a stock163
insurer below the amount then outstanding, the Commissioner shall not approve the164
amendment if he or she has reason to believe that the interest of policyholders or creditors165
of the insurer would be materially prejudiced by such reduction. If any reduction of capital166
stock is effectuated, the insurer may require return of the original certificates of stock held167
by each stockholder in exchange for new certificates for such number of shares as the168
stockholder is then entitled in the proportion that the reduced capital bears to the amount169
of capital stock outstanding as of immediately prior to the effective date of the reduction.170
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(f) When the certificate of the judge of the probate court as to the fact of publication of the171
application for amendment to the charter and the certificate of the Commissioner as to his172
or her approval of the application for amendment shall have been is received in the office173
of the Secretary of State, the Secretary of State shall issue to the corporation under the great174
seal of the state a certificate of amendment. The Secretary of State shall record the175
application for amendment to the charter, the certificate of approval of the Commissioner,176
the certificate of the judge of the probate court as to publication, and the certificate of177
amendment in a book to be kept by him or her for that purpose.178
(g) A petition for renewal of the charter shall follow the procedure set forth in179
subsections (b) through (f) of this Code section, except that the fee for filing a petition for180
renewal of the charter shall be $100.00."181
SECTION 6.182
Said title is further amended in said chapter by revising subsection (b) of Code183
Section 33-14-24, relating to procedure for voluntary dissolution generally, effective date of184
dissolution, and conditions precedent to effectuation of dissolution, as follows:185
"(b) If, at the special meeting or any adjournment thereof, the holders of record of stock186
entitled to exercise two-thirds of all the voting power on such proposal or if a mutual187
insurer, two-thirds of the insurer's members present or represented by proxy at the meeting188
shall by resolution consent that the dissolution shall take place, a copy of the resolution189
together with a list of the names and residences of the directors and officers certified by the190
president or a vice-president vice president and the secretary or an assistant secretary or the191
treasurer or an assistant treasurer of the insurer shall be filed in triplicate with the192
application to surrender the charter required in Code Section 33-14-25 and one a copy shall193
be filed for record in the office of the clerk of the superior court of the county in which the194
office or principal place of business of the insurer is located in this state."195
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SECTION 7.
196
Said title is further amended in said chapter by revising Code Section 33-14-25, relating to197
procedure for surrender of charter, as follows:198
"33-14-25.199
(a) Any insurance corporation chartered by the Secretary of State may surrender its charter200
upon the company filing in the office of the Commissioner of Insurance an application in
201
triplicate, signed with its corporate name and under its corporate seal, stating:202
(1) The name of the company and the location of its principal place of business in this203
state;204
(2) The date of its charter and all amendments thereto and the date or dates of renewal205
or renewals of its charter;206
(3) That it desires to surrender its charter and franchise to the state;207
(4) A certificate attested to by two officers of the company that the procedure required208
by Code Section 33-14-24 has been carried out; and209
(5) Any other information deemed necessary by the Commissioner of Insurance.210
(b) Upon receipt thereof, the Commissioner shall take such action to investigate the211
proposed surrender to determine if the rights of policyholders, creditors, stockholders or212
members, and third party claimants under liability policies of the insurer have been paid213
or properly provided for in a fair and equitable manner. The Commissioner shall after214
making his or her determination issue under his or her hand and official seal a certificate215
approving or disapproving the application for surrender of the charter and shall transmit216
a copy of such certificate of approval to the Secretary of State. If the Commissioner does217
not approve the application, the Commissioner shall notify the insurer in writing of his or218
her reasons for not approving the application for surrender of the charter.219
(c) The fee and publication other requirements set out in subsections (a) through (c) of220
Code Section 33-14-5 shall be applicable to a surrender of charter under this Code section.221
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(d) Upon receipt of the certificate of the judge of the probate court as to the publication of222
the application and the certificate of approval of the surrender from the Commissioner, the223
Secretary of State shall issue under the seal of the state a certificate dissolving the insurer;224
and the Secretary of State shall record the application, the certificate of the judge of the225
probate court, the certificate of approval of the Commissioner, and the certificate226
dissolving the insurer."227
SECTION 8.228
Said title is further amended in Chapter 15, relating to fraternal benefit societies, by revising229
subsection (b) of Code Section 33-15-40, relating to formation of society, petition for charter,230
preliminary certificate of authority, advance premiums, and certificate of authority, as231
follows:232
"(b) The petition for a charter, duly certified copies of the society's bylaws and rules,233
copies of all proposed forms of certificates, applications therefor, circulars to be issued by234
the society, and a bond conditioned upon the return to applicants of the advanced payments235
if the organization is not completed within one year shall be filed with the Secretary of236
State, who may require such further information which is deemed necessary. The bond237
with sureties approved by the Commissioner shall be in such amount, not less than238
$300,000.00 nor more than $1.5 million, as required by the Commissioner. All documents239
filed are to shall be in the English language. The Secretary of State shall transmit240
immediately one copy of the petition to the Commissioner and shall return one copy to the241
petitioner. The petition for a charter, with any and all exhibits attached thereto, shall be242
published in the manner provided in subsection (b) of Code Section 33-14-5. If the243
purposes of the society conform to the requirements of this chapter and all provisions of244
the law have been complied with, the Commissioner shall so certify in writing to the245
Secretary of State and shall furnish the incorporators a preliminary certificate of authority246
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authorizing the society to solicit members as hereinafter provided, but only after the
247
granting of the certificate of incorporation by the Secretary of State."248
SECTION 9.249
Said title is further amended in said chapter by revising subsection (a) of Code250
Section 33-15-41, relating to amendment of laws, referendum, and approval of251
Commissioner, as follows:252
"(a) A domestic society may amend its laws in accordance with the provisions thereof by253
action of its supreme governing body at any regular or special meeting thereof or, if its254
laws so provide, by referendum. Such referendum may be held in accordance with the255
provisions of its laws by the vote of the voting members of the society, by the vote of256
delegates or representatives of voting members, or by the vote of local lodges. A society257
may provide for voting by mail. No amendment submitted for adoption by referendum258
shall be adopted unless, within six months from the date of submission thereof, a majority259
of the members voting shall
have signified their consent to such amendment by one of the260
methods specified in this Code section. Charter amendments shall be filed in triplicate with261
the Commissioner, published, and approved only under the procedure established in Code262
Section 33-14-8."263
SECTION 10.264
Said title is further amended in said chapter by revising subsections (a) and (e) of Code265
Section 33-15-44, relating to consolidations or mergers, as follows:266
"(a) A domestic society may consolidate or merge with any other society by complying267
with the provisions of this Code section. The filing of application, fee, and publication268
other requirements of subsections (a) through (c) of Code Section 33-14-5 shall be269
applicable to a consolidation or merger under this chapter."270
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"(e) Upon receipt of the certificate as to the publication of the application and the271
certificate of approval of the Commissioner, the Secretary of State shall issue, under the272
great seal of the state, a certificate of merger, which certificate shall be the charter of the273
consolidated or merged society. The Secretary of State shall record the application, the274
contract of merger and the other documents required to be filed, the certificate of the judge275
of the probate court, the certificate of the Commissioner, and the certificate of merger in276
a book to be kept by him for that purpose."277
SECTION 11.278
Said title is further amended in Chapter 16, relating to farmer's mutual fire insurance279
companies, by revising subsection (a) of Code Section 33-16-3, relating to procedure for280
incorporation of companies generally, filing and contents of application for charter, and281
granting of charter by Secretary of State, as follows:282
"(a) Twenty or more persons a majority of whom are citizens of this state may become a283
body corporate for the purpose of transacting insurance upon the farmers' mutual fire284
insurance plan as defined in Code Section 33-16-2 by making an application for a charter285
signed by the persons applying for the charter or their counsel in triplicate specifying:286
(1) The name of the proposed corporation. The name shall contain the words 'Farmers'287
Mutual' and shall not be so similar to any name already used by any other corporation288
authorized to transact business in this state as to be confusing or misleading;289
(2) The purpose for which the corporation is formed;290
(3) The name of the county in this state in which the corporation will have its principal291
office and the names of any other counties in which it proposes to operate;292
(4) The name and address of each incorporator;293
(5) The names and addresses of those composing the board of directors of the294
corporation in which the management shall be vested until the first meeting of the295
members; and296
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(6) Any other provisions not inconsistent with this chapter or other applicable laws as
297
are deemed desirable by the incorporators or as may be required by the Commissioner."298
SECTION 12.299
Said title is further amended in Chapter 23, relating to licensing, by revising subsection (a)300
of Code Section 33-23-3, relating to agency licensing and biennial renewals and ownership301
restrictions, as follows:302
"(a) Each principal office and each branch office of an agency as defined in paragraph (2)
303
of subsection (a) of Code Section 33-23-1 must of an agency shall obtain an agency license304
prior to commencement of operations and renew such license biennially and prior to305
December 31 prior to the last day of the origination month of such agency by filing306
application forms prescribed by the Commissioner."307
SECTION 13.308
Said title is further amended in said chapter by revising subsection (b) of Code Section309
33-23-11, relating to issuance and contents of license and display certificate of licensure, as310
follows:311
"(b) The license shall state the legal name and address of the licensee, the date of issue, the312
general conditions relative to expiration or termination, the kind or kinds of insurance313
covered if not an insurance agency license, and the other conditions of licensing."314
SECTION 14.315
This Act shall become effective upon its approval by the Governor or upon its becoming law316
without such approval.317
SECTION 15.318
All laws and parts of laws in conflict with this Act are repealed.319
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