Definitions

As used in this article, the term: (1) ‘‘Limited purpose subsidiary’’ means a subsidiary life, accident, and sickness reinsurer that is organized under this article and is wholly owned by an organizing domestic reinsurer. (2) ‘‘Organizing domestic reinsurer’’ means a domestic life, accident, and sickness reinsurer that organizes a limited purpose subsidiary under this article. (3) ‘‘Reinsurer’’ means an insurer that: (A) Is principally engaged in the business of reinsurance; (B) Does not conduct a significant amount of direct insurance as a percentage of the insurer’s net premiums; and (C) Is not engaged on an ongoing basis in the business of soliciting direct insurance. 689 33-14-102 (4) ‘‘Risk’’ means a risk that is associated with an insurance policy or annuity that is assumed by an organizing domestic reinsurer and for which the organizing domestic reinsurer is required to hold statutory reserves for the policy or annuity. History. — Code 1981, § 33-14-100, enacted by Ga. L. 2011, p. 446, § 1/HB 341. 33-14-101. Authorization to organize domestic limited purpose subsidiary. A domestic life, accident, and sickness reinsurer may organize a domestic limited purpose subsidiary pursuant to the provisions of this article. History. — Code 1981, § 33-14-101, enacted by Ga. L. 2011, p. 446, § 1/HB 341. 33-14-102. Approval of operation plan and certificate of authority requirements; certain disclosure requirements; examination by Commissioner. (a) Before assuming risk under a reinsurance agreement, a limited purpose subsidiary must: (1) Obtain from the Commissioner approval of the limited purpose subsidiary’s plan of operation; and (2) Be granted a certificate of authority to engage in the business of reinsurance in Georgia. (b) A limited purpose subsidiary shall produce or disclose in its plan of operation, amendments, and records, books, documents, reports, and other information that the Commissioner requires the limited purpose subsidiary to produce or disclose under: (1) This article; (2) Rules adopted pursuant to this article; or (3) An order pursuant to an examination performed in accordance with the provisions of Chapter 2 of this title. (c) The Commissioner shall examine domestic limited purpose subsidiaries pursuant to Code Section 33-2-11. History. — Code 1981, § 33-14-102, enacted by Ga. L. 2011, p. 446, § 1/HB 341. 690 33-14-103 DOMESTIC STOCK AND MUTUAL INS. 33-14-106 33-14-103. Powers of limited purpose subsidiary.