Title 33

Principal office of society; meetings; official publications; annual statement; provision for grievance or complaint procedures. Limited liability of officers and members; indemnification; insurance. Limitation on power of subordinate body. Assets and Investments Formation and Pet…

This chapter applies only to domestic farmers’ mutual fire insurance companies. History. — Code 1933, § 56-2001, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 2012, p. 1040, § 1/SB 203.

The companies may provide in the policy that officers and agents elected by them do not have the power to waive any provision of the bylaws. History. — Code 1933, § 56-2010, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 2012, p. 1040, § 1/SB 203.

An annual meeting of such company shall be held at such a time as is fixed in the bylaws of the company. Special meetings may be held for such purposes and in such manner as may be specified in the insurer’s bylaws, consistent with this chapter. All such meetings shall be held in t…

Each policyholder in a farmers’ mutual fire insurance company shall be entitled to only one vote in all policyholders’ meetings. No voting by proxy shall be permitted unless it is specially authorized in the bylaws and approved by the Commissioner. History. — Ga. L. 1923, p. 113, …

(a) The amount of minimum surplus required for each farmers’ mutual fire insurance company shall be determined on an individual basis; however, no farmers’ mutual fire insurance company shall be issued a certificate of authority unless it shall possess and thereafter maintain a mini…

(a) The maximum amount of insurance that a farmers’ mutual fire insurance company may retain on any subject or subjects of insurance reasonably exposed to loss from the same fire shall not exceed 10 percent of its surplus. (b) In determining the amount at risk and retained by the i…

A farmers’ mutual fire insurance company shall not accept reinsurance of the risk of any other insurer. History. — Ga. L. 1923, p. 113, § 17; Code 1933, § 56-1424; Code 1933, § 56-2007, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 2012, p. 1040, § 1/SB 203.

No member of such insurer shall be liable to assessment to pay losses and expenses accruing prior to the time his policy became effective nor for losses and expenses accruing after termination or expiration of the policy. History. — Code 1933, § 56-2019, enacted by Ga. L. 1960, p…

Companies organized under this chapter may bring and defend actions in the name under which they are doing business. History. — Code 1933, § 56-2020, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 2012, p. 1040, § 1/SB 203.

Every farmers’ mutual fire insurance company shall, on or before March 1 of each year, make and file with the Commissioner an annual statement of its business as of December 31 of the preceding year, on the form prescribed by the Commissioner. History. — Code 1933, § 56-2016, enact…

The Commissioner shall at least once in five years, or as often as he or she deems necessary, examine farmers’ mutual fire insurance companies. The costs of the examination shall be paid by the company. History. — Code 1933, § 56-2018, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 20…

(a) ‘‘Domestic farmers’ mutual fire insurance companies’’ are companies organized for the purpose of insuring property against loss or damage by fire, lightning, windstorm, extended coverage, and hail, and for all, or any, of such purposes. (b) Domestic farmers’ mutual fire insuranc…

Any company organized under this chapter shall be exempt from all taxes, costs, and fees, including those listed in Chapter 8 of this title, except as expressly provided in this chapter and except taxes payable upon real and personal property owned by the company. History. — Code…

In addition to this chapter, farmers’ mutual fire insurance companies shall be subject to the following chapters of this title to the extent so applicable: Chapters 1, 2, 5, 6, 12, and 37, and Article 1 of Chapter 11. History. — Code 1933, § 56-2022, enacted by Ga. L. 1960, p. 289…

Any company organized under this chapter may be converted into a mutual insurance company by complying with the applicable provisions of Chapter 14 of this title. History. — Code 1933, § 56-2021, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 2012, p. 1040, § 1/SB 203. CHAPTER 17 RE…

(a) Twenty or more persons a majority of whom are citizens of this state may become a body corporate for the purpose of transacting insurance upon the farmers’ mutual fire insurance plan as defined in Code Section 33-16-2 by making an application for a charter signed by the persons…

(a) No person shall transact or attempt to transact business as a farmers’ mutual fire insurance company unless so authorized by an effective certificate of authority issued by the Commissioner. (b) The Commissioner shall not issue or permit to exist any certificate of authority as …

Farmers’ mutual fire insurance companies shall pay no annual fees or charges other than an annual license fee as provided in Code Section

In companies organized under this chapter, the number of directors shall be not less than three. A majority of the board of directors shall be a quorum for the transaction of business. No person shall be or act as a director of the insurer who does not have insurance in force in …

The board of directors of a farmers’ mutual fire insurance company may, at any time, borrow such sum or sums of money as they may deem necessary to pay its losses, accrued or unaccrued, and may pledge the assets of the company including the contingent liability of policyholders fo…

(a) The bylaws shall state the time and manner of the levy and payment of all premiums or assessments for all insurance written by the company. (b) The bylaws shall also fix the liability of the policyholders for all losses accrued while the policies are in force, in addition to t…

‘‘Domestic farmers’ mutual fire insurance companies’’ defined; risks against which companies may write insurance. Procedure for incorporation of companies generally; filing and contents of application for charter; granting of charter by Secretary of State. Issuance of certificate of …

As used in this chapter, the term: (1) ‘‘Attorney’’ means the attorney in fact of a reciprocal insurer. The attorney may be an individual, firm, or corporation. (2) ‘‘Reciprocal insurance’’ means insurance resulting from an interexchange among persons, known as subscribers, of rec…

Action on the attorney’s bond or to recover against a deposit made in lieu of the bond may be brought at any time by one or more subscribers suffering loss through a violation of its conditions or by the Commis754 sioner as liquidator of the insurer. Amounts recovered on the bond…

(a) The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given to it by the subscribers. (b) The power of attorney must set forth: (1) The powers of the attorney; (2) That the attorney is authorized to accept service of proce…

(a) The attorney of a foreign or alien reciprocal insurer, which insurer is duly authorized to transact insurance in this state, shall not, by virtue of discharge of his or her duties as such attorney with respect to the insurer’s transactions in this state, be thereby deemed to …

(a) Every reciprocal insurer authorized to transact business in this state shall file with the Commissioner a written statement or power of attorney duly signed and sealed appointing and authorizing some person, who shall be a resident of this state, to acknowledge or accept servi…

(a) The advisory committee of a domestic reciprocal insurer exercising the subscribers’ rights shall be selected under such rules as the subscribers adopt. (b) The committee shall: (1) Supervise the finances of the insurer; (2) Supervise the insurer’s operations to such extent as …

Modifications of the terms of the subscribers’ agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers’ advisory committee. No modification shall be effective until it has been filed with and approved by the Co…

(a) A domestic reciprocal insurer formed under this chapter, if it has otherwise complied with the applicable provisions of this title, may be authorized to transact insurance if it has and thereafter maintains surplus funds as follows: (1) To transact property insurance, surplus…

The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms any funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer and, except upon liquidation of the insurer, shall…

(a) Individuals, partnerships, and corporations of this state may make application to, enter into agreement for, hold policies or contracts in or with, and be a subscriber of any domestic, foreign, or alien reciprocal insurer. (b) Any corporation organized under the laws of this …

(a) The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several, and proportionate liability, and not joint. (b) Except as to a nonassessable policy, each subscriber shall have a continge…

(a) All authorized reciprocal insurers shall be governed by those Code sections of this chapter not expressly made applicable to domestic reciprocal insurers. (b) Authorized reciprocal insurers shall comply with this chapter and shall make any amendments to their subscribers’ agr…

(a) No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for 30 days. (b) Any judgment shall be binding upon each subscriber only in such proportion as his int…

In determining the financial condition of a reciprocal insurer, the Commissioner shall apply the following rules: (1) He shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis; (2) The surplus deposi…

(a) Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by the attorney upon approval in advance by the subscribers’ advisory committee and the Commissioner or by the Commissioner in liqui…

Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for and shall pay his share of any assessment, as computed and limited in accordance with this chapter, if: (1) While his or her policy is in force or within one year after its terminati…

No one policy or subscriber as to the policy shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any one calendar year in excess of the amount provided for in the power of attorney or in the subscri…

(a) If the assets of a domestic reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed by the attorney or others, and to maintain the required surplus, its attorney shall immediately make up the defici…

(a) If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum paid-in capital stock required of a domestic stock insurer authorized to transact like kinds of insurance, upon application of the attorney and as approved by the subscribers’ a…

A reciprocal insurer may from time to time return to its subscribers any unused premiums, savings, credits, or profits accruing to their accounts. Any such distribution shall not unfairly discriminate between classes of risks or policies or between subscribers, but the distributio…

Upon the liquidation of a domestic reciprocal insurer, its assets remaining after discharges of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus made as provided in Code Section 33-17-17, and the return of an…

(a) The annual financial statement of a reciprocal insurer shall be made and filed with the Commissioner by its attorney on or before March 1 of each year. (b) The information required by this title of other insurers doing a like insurance business in this state shall be included i…

A reciprocal insurer may be authorized to transact insurance in this state subject to the applicable provisions of this title. History. — Code 1933, § 56-2102, enacted by Ga. L. 1960, p. 289, § 1.