Minimum capital, surplus, and bond requirements

No license or renewal license under this chapter shall be issued to a sponsor other than an insurer as defined in paragraph (2) of Code Section 33-35-2, unless such sponsor: (1) Shall possess as minimum capital and thereafter maintain a minimum balance of at least $5,000.00 in its capital accounts as shown in its annual report to the Commissioner; provided, however, that the Commissioner shall in his discretion require such higher amounts of capital as he deems necessary for the protection of the public; (2) Shall deposit with the Commissioner securities acceptable to the Commissioner in the amount of $25,000.00 or shall file with the Commissioner a bond to be approved by the Commissioner and made payable to the Commissioner or his successors in office, which bond is executed by such applicant as principal and by a corporate surety authorized to do business in this state in the penal sum of $25,000.00, conditioned that the sponsor will conduct his business in accordance with this chapter and the laws of this state and that the sponsor will properly account for all moneys collected in connection therewith. The bond shall remain in full force and effect until the surety is released from liability by the Commissioner or until the bond is canceled by the surety and the bond shall not be canceled or terminated unless prior to the cancellation or termination 30 days’ written notice is filed with the Commissioner; and 661 33-35-7 (3) Shall maintain such minimum surplus as the Commissioner may require, which shall be at least 25 percent of its anticipated income over a two-year period calculated on the basis of estimates of premium writings for two-year and five-year periods which shall be filed with the Commissioner as a part of the sponsors’ rate filing required under Code Section 33-35-11. History. — Code 1933, § 56-3512, enacted by Ga. L. 1975, p. 1268, § 1. 33-35-7. Grounds and procedure for revocation, suspension, or refusal to renew licenses; imposition of probation or fine; review. (a) The Commissioner may revoke, suspend, or refuse to renew the license of any sponsor when and if, after investigation, the Commissioner finds that: (1) Any license issued to the sponsor was obtained by fraud; (2) There was any misrepresentation in the application for the license; (3) The sponsor has otherwise shown itself untrustworthy or incompetent to act as a sponsor; (4) The sponsor has violated any of the provisions of this chapter or of the rules and regulations of the Commissioner; (5) The sponsor has misappropriated, converted, illegally withheld, or refused to pay over upon proper demand any moneys entrusted to the sponsor in its fiduciary capacity belonging to an insurer or insured; or (6) The sponsor is found to be in an unsound condition or in such condition as to render the future transaction of business in this state hazardous to the public. (b) Before the Commissioner shall revoke, suspend, or refuse to renew the license of any sponsor, he shall give to that person an opportunity to be heard fully and to introduce evidence in his behalf. (c) In lieu of revoking, suspending, or refusing to renew the license for any of the causes enumerated in subsection (a) of this Code section, after hearing as provided in this subsection the Commissioner may place the sponsor on probation for a period of time not to exceed one year or may fine the sponsor not more than $2,000.00 for each offense, or do both, when, in the Commissioner’s judgment he or she finds that the public interest would not be harmed by the continued operation of the sponsor. The amount of any penalty shall be paid by such sponsor to the Commissioner for the use of the state. 662 33-35-8 (d) At any hearing provided by this Code section, the Commissioner shall have authority to administer oaths to witnesses. Anyone testifying falsely after having been administered the oath shall be subject to the penalty of perjury. (e) Any action of the Commissioner taken pursuant to this Code section shall be subject to such review as may be provided in Chapter 2 of this title. History. — Code 1933, § 56-3506, enacted by Ga. L. 1975, p. 1268, § 1; Ga. L. 2019, p. 386, § 119/SB 133. The 2019 amendment, effective July 1, 2019, in subsection (c), in the first sentence, substituted ‘‘$2,000.00’’ for ‘‘$1,000.00’’ and substituted ‘‘in the Commissioner’s judgment he or she finds’’ for ‘‘in his judgment he finds’’. 33-35-8. Execution, contents, and filing of subscription contracts generally.