P&C Chapter 24 GA state laws and regulations

2. A motor vehicle policy must be canceled due to any of the following involving the insured within the prior 36 months:

- Drug addiction - Failure to fully disclose accidents or moving traffic violations - Suspension or revocation of the drivers license of a person in the household - Conviction of a felony - Criminal negligence resulting in death homicide or assault involving the use of a motor vehicle - Operating a motor vehicle while under the influence of drugs or alcohol - Leaving the scene of an accident without stopping to report - Theft of a motor vehicle - False statements and a drivers license application - Conviction or forfeiture of bill for three or more motor vehicle violations. 3. When a policy is non-renewed or canceled other than the nonpayment of premium, the insurer must notify the named insured of potential for coverage through the Georgia automobile insurance plan.

1. It is illegal for an insurer to:

- Fail to use due diligence in paying all claims - Compel, without just cause, claimants to accept less than the amount due to them - Except money, trade stamps, gifts or other remuneration of any kind in return for referring automobile and other property repair business including glass breakage to a particular automobile repairer, glass company, contractor, construction company, or other repair company of any kind.

1. An auto policy may be canceled for the following regardless of when the event occurred:

- Failure to pay premiums - Material misrepresentation - Violation of the terms of the policy - Epilepsy or heart attacks any individual does not produce certificate from a physician testifying to his unqualified ability to operate a motor vehicle - Operating a motor vehicle which is so mechanically defective that it is dangerous - Operating a private motor vehicle to carry persons for higher (other than a carpool).

Nonresident Agent

1. A nonresident license will be issued to a person who: - is currently licensed as a resident and in good standing in such persons home state - is a resident of a state that will reciprocate by licensing Georgia agents - Consents to receiving notice of lawsuits by having to notice served upon the commissioner 2. Georgia does not require policies issued by non-resident agents to be Conner signed by resident agents

Premium Trust Account

1. All premiums in return premiums received by license: - Must be accounted for in the licensees fiduciary capacity - Inserted into return premium (within 10 days) - Agent if a commission 2. The licensee may utilize a single fiduciary (trust, escrow) bank account for the premium trust account

Georgia Motor vehicle reparations act

1. An owner of a motor vehicle required to be registered in Georgia was provide liability coverage under the motor safety vehicle reparations act and at least the amount of: - $25,000 bodily injury liability per person - $50,000 bodily injury liability per accident - $25,000 property damage liability per accident 2. Proof of motor vehicle safety responsibility may be given by: - A written certification of insurance (liability insurance) - A surety bond - Certificate of self insurance from the commissioner of insurance who will require annual financial statements audited by the independent certified public accountant. 3. Coverage must apply to the named insured, resident spouse and any resident relative while occupying the covered motor vehicle into any other person legally occupying covered motor vehicle 4. (Interstate compact) upon noticed that her residence driving privileges have been suspended in another state for failure to deposit security for the payment of judgment arising out of a motor vehicle accident causing bodily injury or property damage for $500 or more for Department of driver services must spend a license of such resident until such a resident furnishes evidence of his or her compliance with the laws of a of such other state 5. Whenever any person is convicted of any offense resulting in a mandatory suspension of persons drivers license, the Department of driver services cannot reinstate the license unless the person obtains the certification of the future insurance. 6. Any insurer filing a certification of future insurance with a Department of driver services cannot cancel the certificate within 12 months except for another conviction of an offense requiring the mandatory suspension of drivers license. 7. The insurer must give the Department of driver services 20 days prior written notice of cancellation.

Nonrenewal or cancellation of property or casualty policies

1. And ensure they cancel with only 10 days written notice if the cancellation involves: - Nonpayment of premium - A policy that has been in effect for less than 60 days (it may be canceled without having a reason). 2. If the insured non-renews or cancels, each night renewal or cancellation notice must provide: - 30 days written notice stating the reason for the nonrenewal or cancellation - Noticed that the insured may request a reason for non-renewal or cancellation - Notice of the opportunity within 15 days to request at the commissioner review the reality of the nonrenewal or cancellation (if the insured has tendered a 30 day pro rata portion of the premium to the insurer to provide "interim" coverage) 3. If the appeal of the non-renewal or cancellation is: - Upheld by the commissioner, the insurer must refund the excess portion of the tendered 30 day premium - Not upheld by the commissioner, the insurer must reinstate the policy. 4. Any insurer failing to return an unearned premium within 10 days must pay a penalty of 25% plus interest of 18% per year

Georgia Law Manual

1. Any cease and desist order from the commissioner must: - Be written and signed - State its effective date and purpose - Be delivered to to the person to be ordered by mailing it to the person's principal place of business or last address of record in the Commissioner's office. 2. At any time, the Commissioner may examine the records of: - Any insurer authorized to do business in Georgia - Any licensed insurance agent, broker, counselor or adjuster - Any person transacting the business of insurance. 3. The Commissioner must examine: - Domestic Insurers at least once every 3 years - Rating organizations at least once every 5 years. 4. At the direction of the Commissioner, the Insurer or person so examined must pay all the actual expenses of the examination beyond the cost of regular Department employees. 5. With respect to an examination, investigation or hearing, the Commissioner may take depositions, subpoena witnesses, administrator oaths and affirmations, examine any individual under oath, and compel the production of records, books, papers and other documents. 6. Subpoenas must be served in the same manner as if issued by a superior court. If any individual fails to obey a subpoena, the Commissioner may request try hat the superior court of the county in which the proceeding is pending issue an order requiring such individual to comply with the subpoena. 7. The commissioner may hold hearings for any purpose deemed necessary. 8. But, the Commissioner may hold a hearing upon the written demand of any person aggrieved by the Commissioners act, threatened act or failure to act. 9. Such a request a hearing: - Must be held within 30 days of request - May be held at any place designated by the commissioner - Must be open to the public - Requires that at least 10 days advance notice be given to all affected persons - Must allow the affected persons to testify, present evidence and witnesses, be represented by counsel, and subpoena witnesses and other evidence. 10. The commissioner must inform the prosecuting attorney and his circuit or jurisdiction any criminal violation of the insurance laws may have occurred. 11. The commissioner may bring a legal action in the appropriate superior court to force any order of the commissioner. 12. If an insurer, agent, broker, counselor or adjuster have violated a statute, regulation or order the commissioner may: - Placed a person on probation for up to one year for each violation -suspend or revoke the persons license - Issue a monetary penalty of up to $1000 for each unintentional violation - Issue a monetary penalty of up to $5000 for each intentional (knew or should have known) violation.

Common to All Lines

1. Any person who violates the commissioner cease and desist order is subject to a monetary penalty of up to. $10,000 for each violation 2. The commissioner must pay all taxes, fees, charges and penalties and interest collections to the office of treasury and physical services to be deposited to the state general fund. 3. A license may be refused, suspended or revoked by the commissioner due to: - Fraudulent or dishonest practices - Holding a license for the purpose of securing rebates or commissions (controlled business) - Lack of trustworthiness or competence - Knowingly over insuring a risk - Failure to report to the commissioner any criminal activity within 30 days of the date of arrest - Failure to report the commissioner any license suspension or revocation in another jurisdiction within 60 days - Failure to pay order child support. 4. A person with a suspended license May still receive previously earn commissions and renewal commissions. 5. Any action of the commissioner may be applied within 30 days to the superior Court of Fulton County.

Agents may from time to time adjust claims

1. If so authorized by the insurer, an agent may from time to time adjust claims without being licensed as an adjuster.

Regulation of Premium Rates

1. Insurance companies in the various state insurance commissioners may legally engage in limited price fixing under the federal McCarran - Ferguson act of 1945, although collusion between insurance companies is still prohibited. 2. The commissioner and the insurance companies may legally engage in limited price fixing of premium rates by: - Using rating organizations to set premiums - Regulating insurance rates so that they are not excessive, and adequate or unfairly discriminatory. 3. The rules regulating insurance rates apply to property insurance, casualty insurance and health insurance but generally do not apply for: - Life insurance policies, disability income, specified disease or hospital indemnity policies - Work comp insurance - Ocean marine insurance - Aircraft insurance - Title insurance - Annuities 4. Discriminatory rates are those that are different for persons of approximately the same rate and hazard classification. 5. Excessive rates are those that are unreasonably high 6. Inadequate rates are those which: - Are unreasonably low - Endanger the solvency of the insurer - Tend to destroy competition or create a monopoly.

Surplus Lines

1. Surplus lines insurance is insurance place with an authorized insurer when similar insurance is unavailable through any authorized insurer. 2. A licensed resident property, casualty insurance agent may become licensed as a surplus lines broker but must post a $50,000 bond. 3. A surplus lines agent is not required to be appointed (no need for a certificate of authority).

Georgia Insurance Department and Commissioner

1. The commissioner of insurance is elected 2. The commissioner has the authority to: - Make rules and regulations after giving notice to the public - Organize the department and assign duties to staff members - Issue orders (cease-and-desist orders) two agents or insurers - Regulate anything involving transacting insurance. 3. Transacting insurance includes: - Solicitation and inducement - Preliminary negotiations - Effectuation of a contract of insurance - Transaction of matter subsequent to effectuation of the contract and arising out of it ** Litigation and credit reporting is not included in transacting insurance**

Non-renewal or cancellation of motor vehicle or motorcycle (auto) policies

1. The following cancellation rules do not apply to any auto policy which has been in effect less than 60 days. 2. The following cannot be reasons for auto policy renewal: - Use of the auto in a lawful occupation - The insured's military service if the insured is still a legal resident of Georgia - The number of years driving experience of a member of the household - Age, sex, location of residence within the state, race, creed, national origin, ancestry or marital status - Failure to agree to a writing of supporting insurance business - Accidents or violations which occurred more than 36 months earlier - Claims paid under the policy during 36 month period which did not exceed $750 in total - one at fault claim against the policy during the 36 months (must have two at fault claims in the prior 36 months) - Two at fault claims against the policy within the prior 72 months (must have three at fault claims within the prior 72 months) - for two or fewer of the following within the prior 36 months: • accidents involving two or more motor vehicles in which the driver of the insured automobile was not at fault (must've had three non-fault claims in the prior 36 months) • I didn't short or underinsured motorist coverage claims (must've had three or more) 3. The notice of nonrenewal of an auto policy must include one of the following: - Nonrenewal notice: code section 33-20 4-45 of the official code of Georgia annotated provides that the insurer must upon request furnish you with the reasons for the failure to renew this policy. If you wish to assert that the nonrenewal is unlawful, you must file a written notice with you with this Ensure before the time at which the nonrenewal becomes effective. The notice my specify the manner in which the failure to renew is alleged to be unlawful. If you do not file the written notice, you may not later is there a claim or action against the insurer based upon an unlawful nonrenewal. - Nonrenewal notice due to agent termination: "your policy has not been renewed because your present agent no longer represents this insure. You have the option of procuring coverage through your present agent or retaining this policy by applying through another agent of the insurer. Code section 33-20 4-45 is the official code of Georgia annotated provides that if you will locate another agent of this insure and apply for this policy before the time at which the nonrenewal becomes effective, this ensure will treat the application as a renewal and not as an application for a new policy."

Georgia Automobile Insurance Plan (assigned risk plan)

1. The purpose of the Georgia automobile insurance plan (GAIP is supervised for the equitable apportionment among such auto ensures of persons unable to obtain motor vehicle policies through the voluntary market. 2. All auto insurance companies must participate in the assigned risk plans residual market. 3. GAIP will provide: - Physical damage coverage - medical payments coverage - Uninsured motorist coverage - Liability coverage with a maximum $350,000 single limit or 100/300/50 split limits. 4. To be eligible the applicant must certifying writing that the applicant has been unable to obtain auto insurance from two companies in the last 60 days. 5. GAIP will not provide coverage if the person who usually drives a vehicle does not have a valid drivers license.

Who pays isle the insurer is insolvent?

1. The purpose of the LH guarantee association is to protect policy owners against life or health insurance insolvency by: - Creating an association of insurers to guarantee the payment of claims - Permitting the LH guarantee association to assess member insurers to provide these funds 2. The LH guarantee association will pay up to: - An unlimited amount for a work comp claim - $5 million in benefits for anyone annuity holder - $100,000 cash value on a life policy - $300,000 death benefit on a life policy - $300,000 benefits for a health policy 3. For property and casualty insurance, the state has created the Georgia insurers insolvency pool to cover: - Property or casualty claims over $50 up to $300,000 - Work comp claims regardless of amount 4. It is illegal to advertise the existence of the insurance insolvency pool for the purpose of inducing the purchase of insurance.

Individual Work Comp Insurer Rate Filing

1. Work comp insurers are required to file individual company rates for the voluntary market, that's establishing competitive rates for purchasers of work comp insurance in Georgia.

Adjuster Conflict of Intrest

10. An adjuster license as both an independent adjuster and a public adjuster cannot represent both the insurer and the insured in the same transaction.

Authorized (admitted) Insurers

11. An insurer must obtain a certificate of authority to be "admitted" to transact insurance in Georgia 12. To qualify for a certificate of authority, insurer must have at least $1.5 million in capital. 13. Insurers must file a detailed annual report with the commissioner.

Resident Cancellation

2. After residential policy has been in effect more than 60 days, the policy may be canceled only for the following reasons: - Nonpayment of premium - Fraud or misrepresentation - A substantial increase in the risk - Violation of the policy terms or conditions 3. When a policy is non-renewed or canceled other than for nonpayment of premium, the insurer must notify the Insured of the possible eligibility for coverage through the Georgia Fair Access to Insurance Requirements (FAIR) Plan.

Commissions

2. An insurance agent is generally paid only by the insurer, so an agent cannot accept additional fees from the client unless the compensation has a de minimus value of $45 or less.

Paying Commissions

2. An insurer cannot pay commissions or any other valuable consideration to an unlicensed person for referrals. It is also illegal for an unlicensed person to accept such a referral fee.

Driver Not at Fault

2. Ensure cannot raise the rates of an individual involved in a multivehicle accident when the individual was not at fault

Unfair Trade Practices

2. The following are unfair trade practices: - Paying an unlicensed person for a lead or referral - Misleading advertising - Guaranteeing life insurance policy dividends - Defamation - a false or maliciously critical misrepresentation of an insurers financial condition - Agreeing to boycott and insurer or client - Issuing stock as an inducement to buy insurance - Unfair discrimination - using different rates for persons of approximately the same rate and has a classification - Discrimination based on race, color, mental impairment, physical impairment, total or partial blindness, national origin, ethnic origin or other factors which I've been covered by Georgia law - Discriminating on the basis of family violence - Disclosing that the person may have been the victim of family violence (with a very detailed permitted exceptions) - Requiring credit insurance to be purchased from a particular insurer - Giving free or discounted insurance as an inducement to purchase real or personal property - Giving a discount for property or casualty insurance based on membership in a particular organization - Failing to disclose the cost of insurance when the insurance is included in the cost of purchasing real or personal property - Using an aftermarket crash part to repair a clients Auto without adequate notice in the repair estimate - Paying to a client rebate, such as premium rebates or special favors or advantages not specified in the policy. 3. However it is not considered to be an illegal rebate for an insurer to: - pay policy dividends based on insurance company profits - Give discounts for group policies Give discounts for payroll or checking account deductions - Pay for clients business meals, refreshments and entertainment.

Agent Appointment (Certificate of Authority)

2. The insurer must obtain a certificate of authority for each agent 3. The insurer will be deemed to have obtain a certificate of authority immediately upon submission of the appointment request to the commissioner 4. This is typical of authority must be renewed by the insurer annually 5. The Insurer must notify the commissioner and the agent within 30 days following the agents termination 6. If determination involves the agents lack of moral character, the insurer must so notify the commissioner within the 30 day time limit

Workers compensation assigned risk insurance plan

2. The state board of Worker's Compensation may equitably assign rejected work comp policies to work comp insurance if an applicant has been rejected by four insurers. 3. A work comp down renewal or cancellation must be sent at least 75 days in advance 4. A work comp insurer must provide at least 7 1/2% premium reduction if the employer has been certified by the state board of Worker's Compensation is having a drug-free workplace program.

Grouping of Risks May Be Illegal Residential Insurance Transactions

2. Unless actuarially supported, the following "Grouping of risk" will be deemed unfair race, creed or ethnic extraction discrimination if an applicant acceptability for residential insurance is based on: - The age of the dwelling without giving proper consideration for updated mechanical and structural systems - The applicants: • marital status or the marital status of anyone in the household • length of time and an address • employment or occupational status • length of employment • level of education • willingness to purchase other insurance not requested by the applicant • Military status

Risks Insurable - In State

3. A risk is deemed to have a situs in Georgia is the insurance regards property having a permanent status in Georgia or movable property which is actually in Georgia or is principally used or kept in Georgia or on persons who are Georgia residents.

Drug free workplace discount

3. A work comp and Shari must provide at least a 7 1/2% premium reduction if the employer has been certified by the state board of Worker's Compensation is having a drug-free workplace program.

Continuing Education

3. According to the legislature, licenses are annual it must be renewed prior to December 31 of each year. The commissioner may stagger the renewal deadlines. 4. The commissioner requires: - 15 hours of continuing education (CE) for years for most licenses - But only 10 hours of CE per year for a person who has been licensed for 20 years or more 5. A person who has been a licensed agent for 10 years who only receives renewal or deferred commissions is exempt from: - Having a certificate of authority (appointment) - Completing the annual 15 hours of continuing education

Commission Sharing

3. An agent may only share (split) commissions with an agent having the same type of license (life with life, property with property, etc.).

Licensing Counselors

3. Counselor means any person who engages in the business of counseling, advising, or rendering opinions as to the benefits, values, advantages or disadvantages of a particular insurance policy other than an actuary or consulting advising insurers - When receiving a fee, commission or other compensation for the service a counselor must not receive any compensation from any other sources for the same transaction. 4. An applicant for a counselors license must be bonded and have five years experience in some phase of the insurance business or has sufficient teaching or educational qualifications or experience. 5. Counselor is also licensed as an agent, the counselor may be excepting a commission for selling insurance to the client as well as a fee for being a counselor if the counselor has: - Obtained the clients written consent - Disclosed the amount of the commission to be received from the insurer.

No premium increase for public officials

3. If any of the following are involved in a motor vehicle accident while performing official duties and insurer cannot use that accident as the basis for increasing the premium on the individuals personal motor vehicle: - Law-enforcement officer - Firefighter - EMT

Record Keeping

3. Licensees must be complete record at the office or in the first office for at least five years.

Fair plan - the residual market

4. All property insurers are required to participate in the creation of: - A fair access to insurance requirements plan - And underwriting association to provide proportional assessments against insurers to pay for the FAIR plans expenses and losses 5. Insurers share fair plan expenses and losses in the same proportion as its premiums bear the aggregate premiums written by all property insurance in the state. 6. The Georgia fair plan is administered by the Georgia underwriting association (GUA). 7. For residential (habitation or closer to see properties GUA/fair plan policy may provide coverage for: - Standard dwelling policy with optional extended coverage - Coverage for only wind and hail - Section 2 liability coverage - Coverage for burglary and robbery 1. For commercial property, the fair plan may cover: - Commercial property policies - Builders risk policy's 2. The fair plan will inspect and applicants property and may decline to insure the risk 3. However, a risk cannot be declined due to the neighborhood or any environmental hazards beyond the control of the applicant 4. Although an agent has no authority to issue fair plan binders, an applicant may request at the fair plant issue a temporary binder if not notified of acceptance or rejection within 20 days after applying for coverage. 5. Fair plan coverage is limited to: - $2 million per structure for either habitation or commercial risks - $20 million per complex or interrelated set of buildings - $10,000 habitation of burglary and robbery - $15,000 commercial burglary and robbery - Section 2 habitation of liability - $100,000 per occurrence and $1000 med pay. 6. Any non-renewal or cancellation of a policy and the normal market must provide and it's 30 days notice that the fair plan may provide residual market coverage (30 days to apply to fair plan). 7. This 30 days coverage notice does not apply if the non-renewal or cancellation is due to nonpayment of premium or arson.

Controlled Business

4. An agent cannot use an insurance license to obtain a rebate or commission on "controlled business", and must not in any calendar year affect controlled business that will aggregate as much as 25% of the volume of insurance sold by such applicant during such a year, as measured by the comparative amounts of premiums. 1. Control business means property or casualty insurance sold: - For an agent or agent's spouse - For an agents relative by blood or marriage within the second degree of kinship - For a persons employer or the firm of which an agent is a member - For any officer, Director, stockholder, or member of an agency employer or of any firm of which an agent is a partner - For any spouse of the officer, Director, employer, stockholder or member of the agents firm - For an agent ward or employee - For any person or in regard to any property under an agent control or supervision in any fiduciary capacity.

Agent signing blank policies

4. An agent must not sign in blank any policy to be issued outside of such agents office

Licensing the Agency

4. Business entry or agency being a corporation, association, partnership, sole proprietorship, Limited liability Company, Limited liability partnership or other legal entity license to sell insurance 5. Each principal office in each branch office of an agency must obtain an agency license 6. A person with a refused, suspended or revoked license cannot on 10% or more of an agency 7. And ensure May pay a commission to a licensed insurance agency if all person to sell insurance or license agents

Notice required of termination or Non-renewal due to an increased n premium rates or a change restricting coverage

4. Each property insured must give 45 days written notice if renewal is due to: - A premium increase of 15% or more - A policy change with limits coverage 5. Failure of an insurer to comply with this section entitles the insured to purchase, under the same premiums and policy terms and conditions, an additional 30 day period of insurance coverage. 6. A work comp non-renewal or cancellation must be sent at least 75 days in advance.

Illegal Policies Still Valid

4. If an insurance policy is sold in violation of Georgia law (such as through an unauthorized insurer), the policy will still provide a valid coverage.

Defensive Driver Course Discount

4. Insurers must offer a premium reduction of at least 10% on personal auto policy for liability, med pay and collision coverages (not comprehensive) if the named drivers: - Have had no traffic offenses for the prior three years - Have had no fault base claims for the prior three years - 25 or older and have completed and approved six hour defensive driving course. 5. To continue eligibility for the discount, the insured must repeat the defensive driver course every three years I have no traffic offenses or at fault claims. 6. For drivers under 25, and approve new driver preparatory course (30 hours classroom and six hours practical training) substitutes for the defensive driver course.

Licensing Agents

4. The following are not deemed to be insurance agents and thus don't need to be licensed in Georgia: - An insurer - An attorney at law advising clients - A representative of an ocean marine insurer I'm - a representative of a farmers mutual fire insurance company - An employee of a consumer reporting firm - A person working for a collection agency - A payroll clerk making employee salary deductions for premiums under a group insurance policy - Underwriters - Agency sales managers who supervise agents - Insurance advertising firms - An out-of-state agent who sells commercial property or casualty insurance to a business with operations in more than one state. 5. An agent or producer represents the insurer. 6. An applicant for a resident agents license must: - Be 18 years of age - Be of good character - Reside in and be president within Georgia for at least six months every year - Complete the required pre-licensing education - Pass the licensing exam - Be appointed as an agent by an authorized insurer. 1. A non-resident agent who moved to Georgia may obtain a Georgia resident agent license without taking the exam by applying for a resident license within 90 days of establishing residenceinn.georgia.

Limited Lines Agent

5. A limited license maybe used to sell: - Rental car insurance policy is not to exceed 90 days - Credit insurance - Insurance on communications equipment such as cell phones 6. Limited license agents are not required to pass a licensing exam. 7. Each car rental company must provide its limited license or rental car agents with a training program +2 hours of annual continuing education. 8. Limited licensee rental car agents cannot advertise or hold themselves out as insurance agents. 9. Vendors of cell phones and other similar communications equipment may obtain a limited license for the purpose of selling insurance policies covering theft, loss, or malfunction of the items sold. 10. Credit insurers must certify that their licensees has completed a minimum of five hours of self study and credit insurance subjects prior to licensure.

Residential Nonrenewal

5. A residential policy cannot be nonrenewed for: - Lack of potential for or failure to agree to a writing of supporting insurance business - A change in the insurers eligibility rules - Two or fewer claims against the policy within the preceding 36 months. If such claims are not attributable to the negligence or intentional acts of the insured or of persons residing at insureds premises (must have three or more "no-fault" claims in the last three years). 1. A residential nonrenewal must state one of the following: - Residential nonrenewal notice: the insurer most upon request furnish you with the reason for the failure to renew this policy. If you wish to assert that the nonrenewal is unlawful you must file a written notice with this insure before the time of which the nonrenewal becomes effective the notice must specify the manner in which the failure to renew is alleged to be unlawful. - Residential nonrenewal notice if the producer is terminated: "your policy has not been renewed because your present agent no longer represents this insurer. You have the option of procuring coverage through your present agent or this retaining this policy by applying through another agent of the insure. Georgia salute provides that if you will locate another agent of the insured and acquire for this policy before the time at which the renewal becomes effective, this ensure will treat the application as a renewal and not as an application for a new policy."

Binders

5. Binders for temporary insurance may be made orally or in writing and will be deemed to include all of the usual terms of the policy as to which the binder was given together with any applicable endorsements that are designated in the binder. 6. No binder will be valid beyond the issuance of the policy with respect to which it was given or beyond 90 days from its affective date, which ever. Is the shorter

Reciprocal State Fees

5. If any other state or country charges Georgia insurers or agents taxes or fees beyond those charged by Georgia, the commissioner will automatically impose those fees against foreign insurers and nonresident agents from those states or countries.

Reporting Premiums

5. The agent must: - State the amount of the premium and the policy - Report the amount of the premium to the insurer 6. Although an agent cannot usually collect from the client any additional fee beyond the amount of the premium, it is permissible for an agent to collect: - A de minimus payment from the client not to exceed $45 - A medical exam fee from a life or accident and sickness policy applicant - On an unpaid premium 30 days past due, a minimum service charge of one dollar per month not to exceed $.15 per $10 per month (18% per year)

Inactive License

6. An agents license will be placed on an active status when the agent no longer has a file with the commissioner or certificate of authority to represent at least one insurer 7. If the license has been in active for two consecutive years, the license may be revoked without notice or hearing 8. A person with an inactive license must comply with the continuing education requirements.

Types of Insurers

6. An alien insurer is an insurer formed under the laws of another country. 7. A foreign insurer is an insurer formed under the laws of another state. 8. A domestic insurer is an insurer formed under the laws of Georgia. 9. A mutual insurer is an insurer without stock or shares but which is owned and governed by its policyholders 10. A stock insure is an insurer with stock or shares and which is on an governed by its shareholders.

Workers Compensation

6. Georgia is a private insurer State - the state government does not sell work comp insurance. Employers must either self insure or obtain work comp insurance from a private insurance company. 7. Work comp in Georgia is generally compulsory if an employer has three or more regular employees (full or part time) 8. Work comp coverage is optional for: - Businesses with fewer than three employees - Sole proprietors and partners - up to five corporate officers - Railroad workers - Farm laborers - domestic servants - real estate salespersons and brokers.

Licensing of Adjusters

6. Nonresident adjusters are not required to be licensed to: - Adjust a single loss or of losses arising out of a common catastrophe - Adjust on an emergency basis for up to 60 days if the nonresident adjuster is licensed in another state. 7. The following do not need to be licensed to adjust claims in Georgia: - Persons who adjust life insurance, marine insurance or annuities - Salaried employees of insurers who are just claims under policies issued by the insurer. 8. An independent adjuster is an adjuster representing the interest of the insurer 9. A public adjuster: - Represents the interests of the insured - Must be bonded - Cannot accept payments from a lawyer for recommending that lawyer - Cannot recommend a particular attorney.

Readable Policies

6. The following policies must be written in a simplified, readable format divided into logically arranged and captioned sections: - Home owner and renter policies - Personal auto policies - Individual and group life policies - Individual and group accident and sickness (health) policies

Rebating

7. Because property and casualty premium rates are filed with a commissioner, it is illegal for an insurer to give a rebate, reduction, or discount and premiums as an inducement to purchase insurance. 8. It is, however permissible for an insured to provide food and refreshments recurrent or prospective clients during sales presentations, provided that no insurance policies are offered during the presentations.

Honor Student Discount

7. Drivers under age 25 may also receive an appropriate rate reduction approved by the commissioner if the driver is: - Unmarried and enrolled as a full-time student (high school, college or vo-tech) An honor student (has a B or 3.0 grade average, or is the top 20% of the class or is on the Dean's list or is on the honor roll) 8. Proof of honor student status may be provided to the insured annually. 1. An insurer may drop the honor student discount for any of the following during the prior three years: - An at fault accident - Any serious traffic offense - Any drug offenses - Refusal to submit to chemical testing and a driving situation

Medical malpractice notice

7. Every medical malpractice ensure mass within 30 days notify the composite state Board of medical examiners when it pays a judgment or settles in medical malpractice claim

Probationary agent

7. The commissioner may issue a probationary license to any applicant for a period of no less than three months but not longer than 12 months, subject to immediate revocation for cause at any time without a hearing.

Disclosure request from plaintiffs attorneys

8. Every insured must, within 30 days of request from a claimant or the claimants attorney, disclose the name of each known insure which may be liable upon the claim. 9. Every liability insurer must provide, within 60 days of request from the claimant, a statement under oath regarding each relevant liability policy, including the name of the insured, the name of each insured and the limit of coverage.

Temporary Agent

8. In the event of an agency incapacitation due to death, illness, disability or military service, if there is no other individual connected with the agency who is licensed for assurance of the type transacted by the incapacitated agent, the commissioner may issue a temporary license to the following for the purpose of either continuing or wanting up the business: - An employee of the agency - A member of the incapacitated agents family - A guardian, receiver, executor or administrator 9. Temporary agent must be supervised by a licensed agent 10. A temporary license will be valid for only six months and renewable for three month extensions to a maximum of 15 months from the date of first issue 11. A temporary agent may renew existing policies but cannot sell new policies.

Subagents

8. It said agent means an agent or producer who asked for another licensed agent in selling insurance and who has on file with the commissioner of certificate of authority from each agent with whom The sub agent place is insurance. 9. Each agent must obtain a certificate of authority (appointment) for each sub agent 10. It's an agent certificate of authority (appointment) they only cover the same kind of insurance for which the sponsoring agent is licensed. 11. A sub agent does not have power to issue binders 12. Insurance business transacted buy a sub agent must be in the name of the agent who will be responsible for all acts or omissions of the subagent.

I'm minus red Motorist Coverage

8. Unless rejected by the insured in writing, every motor vehicle liability insurer must offer an endorsement for uninsured motorist in the amount of at least: - $25,000 bodily injury per person - $50,000 bodily injury per accident - $25,000 property damage per accident Dash at the option of the insured not less than the limits of the insurance liability coverage. 9. The uninsured motorist coverage is may be subject to the following deductibles which must result in a lower premium: Dash for bodily injury or property damage deductibles of $250, $500, or $1000 at the option of the insured.

Rate Deviation Requests

9. An insurer may use a rate which is in higher or lower than the rate filed with the commissioner if a "rate deviation" request and the policy are filed in advance with the commissioner. 1. However if the right deviation request exceeds $1000 a temporary binder may be issued as long as the insure that was the right deviation and policy with the commissioner within 20 days. The commissioner will then either approve or reject the rate deviation request.

Place of Business

9. Every license must: - Have a place of business accessible to the public (which may be in home but may not be a mere post office box) - Notify the commissioner in writing within 30 days of any change in business address