Rule 120-2-30-.05. Required Provisions on all Notes or Certificates

The body of the note or certificate shall provide that:

1. (a) All payment of interest and principal shall be payable only out of earned surplus in excess of that surplus required by law to transact the kind(s) of insurance for which the company is authorized.
2. (b) All proposed payments of any interest and principal shall be submitted to the Commissioner for his approval prior to any payments being made.
3. (c) The Commissioner may disapprove the repayment of any surplus loan if it is found that a reduction of the insurer's surplus would be hazardous to its policyholders or to the public.

Submitted for Publishing: Mar. 15, 2007.

Authority: Ga. L. 1960, pp. 289, 305, 549, 1969, pp. 490, 491.

History. Original Rule entitled "Required Provisions on all Notes or Certificates" adopted as ER. 120-2-30-0.3-.05. F. and eff. August 5, 1977, the date of adoption.

Amended: Permanent Rule of same title adopted. F. Dec. 19, 1977; eff. Jan. 8, 1978.