Insurance Department and Commissioner

If the Commissioner finds that the request for a hearing is made in good faith and that the applicant could be aggrieved,

a hearing will be held within 30 days after receipt of the request. A notice of the time and place of the hearing must be given at least 15 days in advance. Within 30 days of the hearing, the Commissioner must issue an order related to the decision.

After notice, hearing, and a cease and desist order of the Commissioner, anyone who violates the order may be subject to the following penalties:

A fine of up to $10,000 for each violation; Suspension or revocation of such a person's license; and Any other appropriate relief.

The Commissioner has the power to suspend, revoke, or refuse to issue or renew a producer license, as well as levy a fine as established by state law for violations in any of the following areas of producer activities:

Laws, rules, or regulations of the Insurance Code; Licensing laws; Producer's fiduciary responsibility; and Unfair trade practices.

The general powers, duties, and responsibilities of the Commissioner include, but are not limited to the following:

Set up any necessary divisions or sections of the Department; Appoint assistants, examiners, actuaries, clerks, and other employees; Maintain official records; Adopt and promulgate rules and regulations (must be approved by the Attorney General and be on file as a public record for 10 days); Examine the accounts, records and transactions of any insurance licensed person, insurer, rating organization, or any other organization authorized to transact insurance in this state; Issue a cease and desist order if any person is believed to have violated any provisions of the Code; Complete annual reports; On July 1 each year, compile a supplementary report regarding property and casualty insurance; and During the first week of each quarter, file a report to the chairperson of the House Committee on Insurance and the chairperson of the Senate Committee on Insurance and Labor.

Broad Powers and Duties

The Commissioner of Insurance is the chief officer of the Department of Insurance. The Commissioner is elected to office for a term of 4 years (in federal midterm election years). The purpose and function of the Department and the duties and powers of the Commissioner are to carry out and enforce the provisions of the Insurance Code.

Orders and notices issued by the Commissioner must be made in writing and signed by either the Commissioner or an individual authorized by the Commissioner and must include:

The intent or purpose behind the order; The grounds on which the order is based; and Any action taken or action proposed to be taken.

Because the Commissioner's role is to enforce insurance laws and to protect the public from unfair trade practices,

if the Commissioner suspects that an insurer or its agent has committed a violation or is engaged in an unfair trade practice, the Commissioner may issue a statement of charges and hold a hearing for any purpose deemed necessary (within the scope of the Insurance Code).

The purpose of the examination

is to ensure that the companies remain solvent and conduct business of insurance in compliance with state laws and regulations pertaining to licensing, policy forms, rates, claims, and market conduct.

Every person being examined

must make their records freely accessible. If the Commissioner finds these records inadequate, the person will be given 60 days to correct them. If the individual fails to do so, experts may be employed to correct them at the expense of the person being examined.

If the Commissioner cannot serve due to death, disability or resignation,

the Chief Deputy Commissioner serves until the next election. The Chief Deputy, however, must have a $15,000 bond approved by the Commissioner (conditioned upon the performance of the Chief Deputy Commissioner's duties).

Whenever necessary,

the Commissioner may examine the records of each insurer authorized to do business in the state. However, the Commissioner must examine all domestic insurers at least once every 5 years. Examination of alien insurers is limited to their insurance transactions in the United States. Any insurer authorized to transact business in the Georgia that changes its domicile from Georgia to another state may be examined once a year for 5 years. Furthermore, agents, solicitors, brokers, counselors, adjusters, managers, and promoters may also be subject to examination.

If, after a hearing, the Commissioner determines that the person charged has engaged in an unfair method of competition or an unfair or deceptive act or practice

the Commissioner will send to the person a written copy of the violations and a cease and desist order requiring the person to stop engaging in such method of competition, act, practice, or violation. The Commissioner may also impose one or more of the following penalties: A monetary fine up to $1,000 for each violation, or $5,000 for willful violations, where a person knew or reasonably should have known they were in violation; Suspension or revocation of the person's license if the person has knowingly committed the violation; or Any other relief as is reasonable and appropriate.

The Commissioner must also pay any collected taxes, fees, dues, charges, and penalties

to the Office of Treasury and Fiscal Services. The Commissioner is authorized to make refunds of or to allow credits for any amounts which have been illegally or erroneously paid or collected. No refunds will be allowed unless a written request is filed with the Commissioner within 7 years from the date of the payment.