Liability of reinsurers

The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings regardless of any provision in the reinsurance contract or other agreement. The reinsurance shall be payable under a contract or contracts reinsured by the assuming insurer on the basis of reported claims allowed by the liquidation court, without diminution because of the insolvency of the ceding insurer. Such payments shall be made directly to the ceding insurer or to its domiciliary liquidator except: 746 33-37-32 (1) Where the contract or other written agreement specifically provides for another payee of such reinsurance in the event of the insolvency of the ceding insurer; or (2) Where the assuming insurer, with the consent of the direct insured or insureds, has assumed such policy obligations of the ceding insurer as direct obligations of the assuming insurer to the payees under such policies and in substitution for the obligation of the ceding insurer to such payees. History. — Code 1981, § 33-37-31, enacted by Ga. L. 1991, p. 1424, § 7; Ga. L. 2001, p. 872, § 1. 33-37-32. Premiums due during pendency of liquidation action; penalties for violation; notice; right to appeal. (a)(1) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay any unpaid premium for the full policy term due the insurer at the time of the declaration of insolvency, whether earned or unearned, as shown on the records of the insurer. The liquidator shall also have the right to recover from such person any part of an unearned premium that represents commission of such person. Credits or setoffs or both shall not be allowed to an agent, broker, or premium finance company for any amounts advanced to the insurer by the agent, broker, or premium finance company on behalf of, but in the absence of a payment by, the insured. (2) An insured shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency, as shown on the records of the insurer. (b) Upon satisfactory evidence of a violation of this Code section, the Commissioner may pursue either one or both of the following courses of action: (1) Suspend, revoke, or refuse to renew the licenses of such offending party or parties; or (2) Impose a penalty of not more than $5,000.00 for each and every act in violation of this Code section by said party or parties. (c) Before the Commissioner shall take any action as provided in subsection (b) of this Code section, written notice shall be provided to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation and fixing a time and place, at least ten days thereafter, when a hearing on the matter shall be held. After such hearing, or upon failure of the accused to appear at such hearing, the Commissioner, if he shall find such 747 33-37-33 violation, shall impose such of the penalties under subsection (b) of this Code section as he deems advisable. (d) When the Commissioner shall take action in any or all of the ways set out in subsection (b) of this Code section, the party aggrieved may appeal from said action to the superior court. History. — Code 1981, § 33-37-32, enacted by Ga. L. 1991, p. 1424, § 7. 33-37-33. Application for approval of proposal to disburse assets; notice.