Contracts between agency and administrator

(a) If an agency contracts with an administrator, the agency and the administrator must enter into a written agreement which shall be subject to review and approval by the Commissioner in accordance with this Code section and which shall contain at least the following: 1349 36-85-12 (1) A contractual provision obligating the administrator to obtain and maintain such bonds, deposits, or insurance coverage as may be required to be maintained by this chapter; and (2) A requirement that errors and omissions coverage or other appropriate liability insurance in an amount which is not less than that specified by the rules and regulations of the Commissioner be maintained at all times by the administrator. (b) The terms of any such agreement shall be reasonable and equitable, and the agreement and any amendments thereto shall be filed with the Commissioner at least 30 days prior to their use. Any such agreement and any and all amendments thereto which have not been specifically disapproved by the Commissioner within 30 days after the filing thereof shall be deemed to be approved. (c) A copy of the agreement and any and all amendments thereto shall be furnished to each agency or fund member upon request. History. — Code 1981, § 36-85-10, enacted by Ga. L. 1986, p. 1496, § 1. 36-85-11. Fidelity bond and errors and omissions insurance; administrators to maintain office in state. (a) The Commissioner shall require each administrator to have and maintain a fidelity bond in an amount which the Commissioner deems appropriate but which is not less than $100,000.00. (b) Errors and omissions coverage or other appropriate liability insurance in an amount which is not less than that specified by the rules and regulations of the Commissioner shall be maintained at all times by an administrator of a fund; and a certificate by the insurer or other appropriate evidence of such coverage shall be filed with the Commissioner by the fund. (c) Each administrator shall maintain an office in this state for the payment, processing, and adjustment of the claims of the fund or funds which it represents. History. — Code 1981, § 36-85-11, enacted by Ga. L. 1986, p. 1496, § 1. 36-85-12. Revocation, suspension, or refusal to renew certificate of authority; hearing; voluntary dissolution of fund. (a) The Commissioner may revoke, suspend, or refuse to issue or renew the certificate of authority of any agency when and if, after investigation, he finds that: 1350 36-85-12 (1) Any certificate of authority issued to the agency was obtained by fraud; (2) There was any material misrepresentation in the application for the certificate of authority; (3) The agency, any fund established by the agency, the administrator of a fund, or any marketing representative has otherwise shown itself to be untrustworthy or incompetent; (4) The agency, any fund established by the agency, the administrator of a fund, or any marketing representative has violated any of the provisions of this chapter or the rules and regulations of the Commissioner promulgated pursuant to this chapter; (5) The agency, any fund established by the agency, or the administrator of a fund has misappropriated, converted, illegally withheld, or refused to pay over upon proper demand any moneys which belong to a member or a person otherwise entitled thereto and which have been entrusted to the agency, fund, or administrator in its fiduciary capacities; or (6) The agency or any fund established by the agency is found to be in an unsound condition or in such condition as to render its future transaction of business in this state hazardous to its members. (b) Before the Commissioner shall revoke, suspend, or refuse to issue or renew the certificate of authority of any agency, he shall give the agency an opportunity to be fully heard and to introduce evidence in its behalf. In lieu of revoking, suspending, or refusing to issue or renew the certificate of authority of any agency for any of the causes enumerated in this Code section, after hearing as provided in this Code section, the Commissioner may place the fund and its administrator on probation for a period of time not to exceed one year when, in his judgment, he finds that the public interest and the interests of the fund’s members would not be harmed by the continued operation of the fund. At any hearing provided for by this Code section, the Commissioner or his designee shall have authority to administer oaths to witnesses. Any witness testifying falsely after taking an oath commits the offense of perjury. (c) No fund shall be voluntarily dissolved or otherwise voluntarily cease to function unless: (1) Written approval is first obtained from the Commissioner; and (2) The Commissioner determines that all claims and other legal obligations of the fund have been paid or that adequate provisions for such payment have been made. 1351 36-85-15 History. — Code 1981, § 36-85-12, enacted by Ga. L. 1986, p. 1496, § 1. 36-85-13. Exemption from state and local taxes and fees.