Ga. Comp. R. & Regs. 120-2-45-.05

Current through Rules and Regulations filed through June 17, 2024

Rule 120-2-45-.05 - Captive Insurance Company Managers

(1) Authorization Required.

No person shall, in or from within this state, act as a service provider without the authorization of the Commissioner. Application for such authorization must be made by completing the appropriate application form, which can be found on the Commissioner's website. The application shall be accompanied by all required documents. The application and related documents shall be filed with the application for certificate of authority and are subject to review and approval by the Commissioner.

(2) Service Provider Agreements.

(a) The agreement between any service provider and a company must be in writing. The written agreement with a service provider, and any amendment thereto, shall be filed with the Commissioner at least thirty (30) days prior to the effective date of the agreement unless such initial agreement(s) is filed with the company's Application for Certificate of Authority for a Captive Insurance Company, or any amendment to an agreement.

(b) If the captive manager performs the duties of an insurance managing general agent, reinsurance intermediary, third party administrator, broker or agent, the captive manager must also be specifically authorized by the Commissioner to perform any or all of these functions.

(c) Any agreement filed pursuant to this Rule 120-2-45-.05(2) shall be held as confidential as required by O.C.G.A. § 33-41-16(c).

(3) Designation of a Captive Manager.

Unless a company's plan of operation, as approved by the Commissioner, provides for an employee captive manager, company shall report to the Commissioner in writing, the name and address of the person designated as captive manager and retained to manage the company. The captive manager shall apply, on a form adopted by the Commissioner, for approval by the Commissioner. The form is available on the Commissioner's website.

(4) Designation of Third Party Administrator.

Each company shall report to the Commissioner in writing, the name and address of the person designated as the third party administrator performing the claims administration and loss reserve functions for the company. The third party administrator shall register on a form adopted by the Commissioner, for approval by the Commissioner or the Georgia Department of Insurance. If the person acting as the third party administrator is the captive manager, then this form is not required. The form is available on the Commissioner's website.

(5) Affirmative Duty of Captive Manager.

The designated captive manager shall have an affirmative fiduciary duty to report and disclose to the Commissioner any violation of the laws of this state or these regulations by the company or any conduct by the officers and directors of the company that threatens the solvency of the company. Failure to report or disclose any violation to the Commissioner may result in the termination of the approval of such captive manager as an authorized service provider to companies in this state. Any report or disclosure by a captive manger submitted to the Commissioner shall be held as confidential pursuant to O.C.G.A. Section 33-41-16(c).

Ga. Comp. R. & Regs. R. 120-2-45-.05

O.C.G.A. § 33-41-23.

Original Rule entitled "Captive Administrator" f. Feb. 9, 1989; eff. Mar. 1, 1989, as specified by the Agency.

Editor's Note: In accordance with O.C.G.A. Section 50-13-21, the contents of this Rule is not filed with or published by the Secretary of State; only names and designations are filed, printed and distributed. This Regulation is on file in the Office of Commissioner of Insurance and is open for public examination and copying. (See Editor's Note, p. 88.03.)

Note: "Editor's Note" rescinded. Eff. October 11, 2015.

Repealed: New Rule entitled "Captive Insurance Company Managers" adopted. F. Sep. 21, 2015; eff. Oct. 11, 2015.