Rule 120-2-60-.02 - Purpose and Scope(1) The purpose of this rule is to improve the Georgia Insurance Department's surveillance of the financial condition of insurers by requiring an annual examination by independent certified public accountants of the financial statements reporting the financial position and the results of operations of insurers.(2) Every insurer (as defined in 120-2-60-.03) shall be subject to this rule. Insurers having direct premiums written in this state of less than $1,000,000 in any calendar year and less than 1,000 policyholders or certificate holders of directly written policies nationwide at the end of such calendar year shall be exempt from this rule for such year (unless the Commissioner makes a specific finding that compliance is necessary for the Commissioner to carry out statutory responsibilities) except that insurers having assumed premiums pursuant to contracts and/or treaties of reinsurance of $1,000,000 or more will not be so exempt.(3) Foreign or alien insurers filing audited financial reports in another state, pursuant to such other state's requirement of audited financial reports which has been found by the Commissioner to be substantially similar to the requirements herein, are exempt from this rule if: (a) A copy of the Audited Financial Report, Report on Significant Deficiencies in Internal Controls, and the Accountant's Letter of Qualifications which are filed with such other state are filed with the Commissioner in accordance with the filing dates specified in 120-2-60-.04 and .11 and .12, respectively (Canadian insurers may submit accountants' reports as filed with the Canadian Dominion Department of Insurance); or(b) A copy of any Notification of Adverse Financial Condition Report filed with such other state is filed with the Commissioner within the time specified in 120-2-60-.10.(4) This rule shall not prohibit, preclude or in any way limit the Commissioner of Insurance from ordering and/or conducting and/or performing examinations of insurers under the rules and regulations of the Georgia Department of Insurance and the practices and procedures of the Georgia Department of Insurance.Ga. Comp. R. & Regs. R. 120-2-60-.02
O.C.G.A. Secs. 33-2-9, 33-2-11, 33-3-21.
Original Rule entitled "Purpose and Scope" adopted. F. Oct. 7, 1994; eff. Oct. 27, 1994.Repealed: New Rule of same title adopted. F. June 25, 2015; eff. July 15, 2015.