Rule 120-2-55-.07 - Prohibited Acts During Period of SupervisionDuring the period of supervision, the Commissioner or his designated appointee shall serve as the Administrator. The Commissioner may provide that the insurer is prohibited from doing any of the following things during the period of supervision, without the prior approval of the Commissioner or his appointed supervisor:
(a) Dispose of; convey or encumber any of its assets or its business in force;(b) Withdraw any of its bank accounts;(c) Lend any of its funds;(d) Invest any of its funds;(e) Transfer any of its property;(f) Incur any debt, obligation or liability;(g) Merge or consolidate with another company;(h) Approve new premiums or renew any policies;(i) Enter into any new reinsurance contract or treaty;(j) Terminate, surrender, forfeit, convey or lapse any insurance policy, certificate or contract, except for nonpayment of premiums due;(k) Release, pay or refund premium deposits, accrued cash or loan values, unearned premiums, or other reserves on any insurance policy, certificate or contract;(l) Make any material change in management;(m) Increase salaries and benefits of officers or directors or the preferential payment of bonuses, dividends or other payments deemed preferential; or(n) Any other action the Commissioner deems may impair the safety or security of the insurer's policyholders or certificate holders, its creditors, or the public.Ga. Comp. R. & Regs. R. 120-2-55-.07
O.C.G.A. Secs. 33-2-9, 33-3-1, 33-3-17, 33-3-18.
Original Rule entitled "Prohibited Acts During Period of Supervision" adopted. F. Aug. 19, 1993; eff. Sept. 8, 1993.