Rule 120-2-34-.17 - Administrator's Bond and Errors and Omissions Coverage(1) Each administrator shall have and maintain a fidelity bond in the amount of at least $100,000, as required by Rule 120-2-49-.07, on a form approved by the Commissioner.(2) Each administrator shall have and maintain errors and omissions coverage or other appropriate liability insurance, written by an insurer authorized to transact insurance in this State, in an amount of at least $100,000.(3) Any policy written in accordance with paragraph (2) of this Rule shall be for a term of at least one year and shall contain provisions that:(a) cancellation or termination of the policy is not effective except upon sixty (60) days written notice by registered or certified mail;(b) the policy is automatically renewable at the expiration of the policy period except upon sixty (60) days written notice of either party; and(c) copies of notices required in subparagraphs (a) and (b) be mailed to the Commissioner by registered or certified mail.(4) Upon approval by the Commissioner, bonds or policies may be written by an eligible surplus lines insurer.(5) Compliance by the administrator with paragraphs (1) and (2) of this Rule is a prerequisite to approval of its application by the Commissioner.Ga. Comp. R. & Regs. R. 120-2-34-.17
Ga. L. 1960, pp. 289, 305; Ga. L. 1981, pp. 1759, 1778; O.C.G.A. Secs. 33-2-9, 34-9-167, 34-9-174.
Original Rule entitled "Reserve Requirements" was filed on March 16, 1982; effective April 15, 1982, by Order of the Insurance Commissioner.Repealed: New Rule of same title adopted. F. May 9, 1990; eff. June 15, 1990, as specified by the Agency.Repealed: New Rule entitled "Administrator's Bond and Errors and Omissions Coverage" adopted. F. Nov. 4, 1997; eff. Nov. 24, 1997.