Rule 120-2-40-.08. Books and Records; Examination

1. (1) Each Agency shall maintain separate records for each individual Fund as to Members, administrative expenses, claim payments, claim reserves, premiums, premium reserves, surplus, and any other items as the Board of Trustees or the Commissioner may deem necessary which will produce accurate financial statements and management reports.
2. (2) The Commissioner, or his representative, may, either before granting a certificate of authority or at any time thereafter, but at least once every five (5) years, examine the Agency or any of its authorized Funds. The examination will include all affairs that relate to the business operated by an Agency or any of its authorized Funds. All related accounts, books, publications, records, and vouchers of any Agency or any of its authorized Funds shall be held for a term of at least seven (7) years and maintained at the principal address shown on its certificate of authority, except that a Fund's records currently in use by the Administrator may be maintained at the Administrator's office. All materials pertaining to an active claim for which benefits are being paid shall be maintained until the claim is settled or otherwise terminated and then held for one year after the file is closed or until such file has been subject to a quinquennial Insurance Department examination, whichever period is longer.
3. (3) For the purpose of ascertaining their compliance with Chapter 2 of Title 20, Chapter 85 of Title 36, and this Regulation Subject, when he deems it necessary in the public interest, the Commissioner may examine the affairs, accounts, documents, and transactions of an Agency or any of its authorized Funds. The Commissioner may employ such experts or personnel as necessary at the expense of the certificate of authority holder to rewrite, post, complete or correct such documents or records within sixty (60) days after the Commissioner has given the licensee written notice to do so. If warranted by the examination's findings, the Commissioner shall require changes in the Agency's reserving, accounting and recordkeeping practices. These examinations are in addition to the Commissioner's authority to examine an Agency or any of its authorized Funds as authorized in O.C.G.A. Section 20-2-2014 and Section 36-85-14, and as related in this Rule.
4. (4) The Commissioner, or his representative, shall have free access to all Agency or Fund accounts, records, books, publications, and vouchers. The administrators, officers, trustees, employees and representatives of the Agency or Fund shall aid the Commissioner, or his representative, as far as it is in their power in making the examination.
5. (5) The costs of any examination performed by the Commissioner, or his designated representative, under this Section shall be borne by the Agency or Fund being examined in accordance with O.C.G.A. § 33-2-15.
6. (6) The examination report shall be processed in accordance with O.C.G.A. § 33-2-14.

Editor's Note: In accordance with Ga. Laws 1967, p. 618, (Ga. Code Ann., Section 3A-124), the contents of the following Rules are not filed with or published by the Secretary of State; only the name and designation is filed, printed, and distributed. These Regulations are on file in the office of the Comptroller General and are open for public examination and copying. (See Editor's Note, p. 88.03.)

Authority: O.C.G.A. §§ 20-2-2016, 33-2-9; 36-85-16, 50-13-21.

History. Original Rule entitled "Books and Records; Examination" was filed on April 10, 1987; effective April 30, 1987.

Amended: F. Aug. 4, 2025; eff. Aug. 24, 2025.