§ 33-52-12 — Definitions

Georgia § 33-52-12

• Jurisdiction: Georgia
• Title: 33

Text

As used in this article, the term: (1) "Affiliate" means a person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the person specified. (2) "Applicant" means an assuming insurer, transferring insurer, or reinsurer applying to the Commissioner for the approval of an insurance business transfer plan as provided for in Code Section 33-52-15 . (3) "Approval order" means an order issued by the court approving an insurance business transfer plan as provided for in Code Section 33-52-15 . (4) "Assuming insurer" means an insurer domiciled in this state that assumes or seeks to assume policies from a transferring insurer pursuant to this article. An assuming insurer may be a company established pursuant to Chapter 41 of this title. (5) "Court" means the Superior Court of Fulton County. (6) "Implementation order" means an order issued by the court implementing an insurance business transfer plan as provided for in Code Section 33-52-15 . (7) "Independent expert" means an impartial individual who assists the Commissioner and the court in connection with their review of a proposed transfer and novation of insurance business. The Commissioner shall select such expert from a list of at least two nominees submitted jointly by the transferring insurer and the assuming insurer; provided, however, that, if the Commissioner, in his or her sole discretion, rejects such nominees, the Commissioner may appoint another person to serve as an independent expert. An independent expert or nominee shall: (A) Hold no financial interest in either the assuming insurer or transferring insurer or any of their respective affiliates; (B) Not have been employed by or acted as an officer, director, consultant, or other independent contractor for either the assuming insurer or transferring insurer within the previous twelve months; (C) Not be simultaneously appointed by the Commissioner to assist in any capacity in any insurer rehabilitation or delinquency proceeding; (D) Not receive or be promised compensation in connection with the insurance business transfer for which he or she is selected to serve as an independent expert; provided, however, that a fee may be approved by the Commissioner that is not contingent upon the approval, implementation, or consummation of an insurance business transfer plan; and (E) Provide proof of insurance covering the services provided as an independent expert as determined by the Commissioner. (8) "Insurance business transfer" means a transfer and novation in accordance with this article. An approved insurance business transfer transfers insurance obligations, risks, rights, or any combination thereof, of existing or in-force contracts of insurance or reinsurance from a transferring insurer to an assuming insurer. An approval order and an implementation order of an insurance business transfer plan will effect a transfer and novation of the transferred contracts of insurance or reinsurance with the result that the assuming insurer becomes directly liable to the policyholders of the transferring insurer and the transferring insurer's insurance obligations, risks, rights, or any combination thereof, under the contracts are extinguished. (9) "Insurance business transfer plan" or "plan" means the plan submitted to the department to accomplish the transfer and novation pursuant to an insurance business transfer, including any associated transfer of assets and rights from or on behalf of the transferring insurer to the assuming insurer. (10) "Insurer" means an insurance or surety company, including a reinsurance company, and includes a corporation, company, partnership, association, society, order, individual, or aggregation of individuals engaging in or proposing or attempting to engage in any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships, and corporations. (11) "Notice" means written notice, telephone notice, electronic notice, or substitute notice, as consented to in an agreement included in or related to the subject business, or as provided by rules and regulations promulgated by the Commissioner. (12) "Petitioner" means an assuming insurer, transferring insurer, or reinsurer petitioning a court for an approval order and an implementation order of a plan pursuant to this article. (13) "Policy" means a policy, contract or certificate of insurance or a contract of reinsurance pursuant to which an insurer agrees to assume an insurance obligation or risk, or both, of a policyholder or to make payments on behalf of, or to, such policyholder or its beneficiaries, and shall include property, casualty, life, health, and any other line of insurance the Commissioner deems appropriate for an insurance business transfer. (14) "Policyholder" means an insured or a reinsured under a policy that is part of the subject business. (15) "State insurance guaranty association" means the Georgia Insurers Insolvency Pool, created by Chapter 36 of this title, the Georgia Life and Health Insurance Guaranty Association, created by Chapter 38 of this title, or any similar organization in another state. (16) "Subject business" means the policy or policies designated for transfer and novation pursuant to a corresponding insurance business transfer plan. (17) "Transfer and novation" means the transfer of insurance obligations, risks, rights, or any combination thereof, of existing or in-force policies from a transferring insurer to an assuming insurer, with the result that the assuming insurer becomes directly liable to the policyholders of the transferring insurer on the transferred policies and the transferring insurer's insurance obligations, risks, rights, or any combination thereof, under the transferred policies are extinguished. (18) "Transferring insurer" means an insurer or reinsurer that seeks to or has accomplished a transfer and novation of insurance obligations, risks, rights, or any combination thereof, under one or more policies to an assuming insurer pursuant to an insurance business transfer plan and the provisions of this article.

Legislative History

Added by 2024 Ga. Laws 592,§ 4, eff. 5/6/2024.