Rule 120-2-27-.11 - Reinsurance of Credit Risks(1) Any insurance company writing credit life or credit accident and sickness insurance subject to the provisions of this Regulation, may reinsure its liability under any or all of such insurance with any domestic or foreign or alien insurance company authorized or approved to transact reinsurance in this State in accordance with the provisions of Section 33-7-14 of the Georgia Insurance Code; provided, that in the event such reinsurance is placed with an insurer not so authorized or approved to transact reinsurance in this State, the ceding insurer shall, notwithstanding such unauthorized reinsurance, be required to maintain all of the reserves required by Title 33, the Georgia Insurance Code for such line or lines of insurance ceded as if such reinsurance contract or treaty had not been entered into and no credit shall be allowed, as an asset or as a deduction from liability, to any ceding insurer for such reinsurance nor shall such ceding insurer be authorized to increase the amount it has at risk as a result of such unauthorized reinsurance.(2) No reinsurance between insurers, takeover, or other change of insurers over which the debtor has no control shall operate to reduce the benefits or advantages which the insured debtor is entitled to receive under the policy or certificate of insurance in any manner.Ga. Comp. R. & Regs. R. 120-2-27-.11
Ga. L. 1960, pp. 289, 305, 333, 393, 657, 714, 734, 747, 750.
Original Rule entitled "Reinsurance of Credit Risks" adopted. F. Mar. 8, 1977; eff July 1, 1977, as specified by the Agency.Submitted for Publishing: Apr. 6, 2007.