Rule 120-2-1-.06 - Property and Casualty Section(1) The primary function of the Property and Casualty Section is the review of all property and casualty rate filings and deviation filings to determine whether such filings meet the requirements of O.C.G.A. Chapter 33-9. The section also is responsible for administering applicable statutes providing for the recording and reporting of loss and expense experience.(2) The section reviews all property and casualty policy forms and endorsements.(3) O.C.G.A. Title 33 requires the licensing of all rating organizations and advisory organizations. This function is performed by the section and new and renewal license fees are collected by this section.(4) The section is responsible for the administration of the 'Georgia Automobile Insurance Plan' adopted pursuant to the direction contained in O.C.G.A. Section 40-9-100.(5) The section shall license all rating organizations. Each applicant for licensing as a rating organization shall submit with its request for a license: (a) A copy of its constitution, its articles of agreement or association or its certificate of incorporation, and of its bylaws, rules and regulations governing the conduct of its business;(b) A list of its members and subscribers;(c) The name and address of a resident of this state upon whom notices or orders of the Commissioner or process affecting such rating organizations may be served;(d) A statement of its qualifications as a rating organization; and(e) A license fee of $100.00 for a license good for one (1) year, with an annual renewal license at a fee of $50.00.(6) The section is to license all advisory organizations. Every advisory organization shall file with the Commissioner a copy of its constitution, its articles of agreement or association or its certificate of incorporation and of its bylaws, rules and regulations governing its activities; a list of its members; the name and address of a resident of this State upon whom notices or orders of the Commissioner or process issued at his direction may be served; and an agreement that the Commissioner may examine such advisory organization in accordance with the provisions of O.C.G.A. Section 33-9-22.(7) The section shall collect fees from rating organizations which shall be licensed for a period of one (1) year with a license fee of $100.00 for such period.(8) All fire and casualty rate filings and deviation filings shall be reviewed. Rates shall not be excessive, inadequate or unfairly discriminatory. Filings may be reviewed by this section for any reason not inconsistent with the provisions of the Georgia Insurance Code which the Commissioner shall deem necessary and appropriate to accomplish the purposes and objectives of such Code, including, without limitation: (a) Whether the rating organization making the filing has made a valid interpretation and use of the data submitted;(b) Whether such rating organization has used acceptable actuarial techniques;(c) Whether the rates are consistent with the coverage provided; and(d) Any other relevant factors.(9) All property and casualty policy forms and endorsements shall be reviewed. Policy forms are reviewed by this section to determine that:(a) Coverage is not unduly restrictive;(b) Wording is not ambiguous;(c) The coverage is not contrary to public policy;(d) The coverage bears a relationship to the premium charged; and(e) The contract covers a legitimate insurable interest.(10) The section shall receive from statistical agencies and advisory organizations statistical plans reasonably adapted to each of the rating systems on file, which may be modified from time to time and which shall be used thereafter by each insurer in the recording and reporting of its loss and countrywide expense experience, in order that the experience of all insurers may be made available at least annually in such forms and details as may be necessary to aid the section in determining whether rating systems comply with the standards set forth by law for the making of rates.(11) This section shall supervise administration of the 'Georgia Automobile Insurance Plan.' After consultation with insurance companies authorized to issue automobile insurance policies in this State, the section shall recommend to the Commissioner for approval a reasonable plan or plans for the equitable apportionment among such companies of applicants for such policies, and for motor vehicle insurance policies from persons who are in good faith entitled to such policies but are unable to procure such policies through ordinary methods. When any such plan has been approved, all such insurance companies shall subscribe thereto and participate therein. Any applicant for any such policy, any person insured under such plan, and any insurance company affected may appeal to the Commissioner from any ruling or decision of the manager or committee designated to operate such plan. Any person aggrieved hereunder by any order or act of the Commissioner may, within ten (10) days after notice thereof, file a petition in the superior court of the county of his residence for a review thereof.(12) The section is under the supervision and direction of an assistant director and such section has been delegated responsibility for administering paragraphs (1) through (11) of this Rule. All inquiries, requests, and submissions respecting the matters therein set forth should be directed to: Property and Casualty Section
Office of Commissioner of Insurance
616 West Tower, Floyd Building
Two Martin Luther King, Jr., Drive
Atlanta, Georgia 30334
Ga. Comp. R. & Regs. R. 120-2-1-.06
Ga. Laws 1960, pp. 289 and 306, as amended; O.C.G.A. Sec. 33-2-9.
Original Rule was filed and effective on July 20, 1965.Repealed: New Rule entitled "Property and Casualty Section" adopted. F. Aug. 24, 1989; eff. Sept. 15, 1989, as specified by the Agency.