Property and Casualty

4 acts that constitute the transaction of insurance:

1. soliciting and inducing individuals to purchase insurance, 2. engaging in preliminary negotiations for insurance, 3. effectuating an insurance contract, and 4. transacting matters after an insurance contract has been executed.

8 reasons why Commissioner can revoke certificate of authority

1. violating the Insurance Code; 2.violating a rule, regulation, or order of the Commissioner; 3.being in an unsound condition that makes its continued operation hazardous to policyholders and the public; 4.compelling claimants to accept less than the amount due or to bring legal action to secure full payment for a claim; 5. refusing to be examined or to produce its accounts, records, and files for examination by the Commissioner; 6. refusing to provide additional information that the Commissioner needs to determine whether to renew an insurer's certificate of authority; 7. failing to pay a final judgment rendered against it in Georgia within 30 days; or 8. being affiliated with and under the same management or ownership as another insurer that transacts insurance in Georgia without a certificate of authority (except for surplus lines insurers or insurance holding companies).

Penalties a Commission can order the agent

cease and desist from committing the act or engaging in the practice; be fined up to $1,000 (up to $5,000 for willful violations); or have his or her license suspended or revoked. or up to a $10,000 fine per violation; license suspension or revocation; or any other penalty that may be appropriate.

Hearings

A person who is charged with engaging in an unfair method of competition or committing an unfair or deceptive act or practice is entitled to a hearing and must be notified of the time and place of the hearing at least 15 days in advance

Examination of Records

Commissioner can examine the books and records of an insurer as often as necessary, but at least once every five years

Certificate of Authority

Must have one to transact insurance in GA

Powers and duties of Commissioner of Insc.

conduct hearings, examinations, and investigations; issue licenses and certificates of authority to transact insurance; regulate the rates and services of every insurer, and set reasonable standards and practices for insurers to follow when doing business in the state; enforce the insurance laws; compile an annual report regarding the state of the insurance industry in Georgia; issue rules and regulations to administer the insurance laws; and collect fees and assess penalties against insurers and agents.

Commissioner of Insurance

The head of the state's Insurance Department that enforces the laws governing the insurance business in Georgia

nonadmitted or unauthorized

an agent who does not have a certificate of authority

admitted or authorized insurer

an agent with a certificate of authority

explain renewal of certificate of insurance

remains in force until midnight on June 30 each year. must take the following actions by March 1 each year: file a copy of its annual statement for the preceding year, publish a shortened version of its annual statement in a newspaper, and file a copy of the published statement with the Commissioner.