Rule 120-2-40-.09. Membership

1. (1) Membership in an Agency is available to political subdivisions and boards of education as authorized in O.C.G.A. Chapters 20-2 and 36-85. An Agency may establish other nondiscriminatory criteria for membership.
2. (2) New Members must be admitted according to the standards and procedures specified in the Agency's bylaws. Membership is not effective until the applicant has signed a membership agreement (provided by the Agency) affirming its commitment to comply with the Agency's bylaws, O.C.G.A. Chapter 20-2 or 36-85, as applicable, and this Regulation, including joint and several liability. The membership agreement must disclose that under the rules governing the Agency, the board of trustees or the Commissioner may order that an assessment be levied against the Members, if necessary, to maintain the Agency's or any of its Fund's' sound financial condition.

3. (3) The membership agreement must state all conditions and procedures necessary for a Member to voluntarily terminate its membership in an Agency or any of its Funds. A Member must notify the Agency of its desire to terminate not less than ninety (90) days before the date upon which it desires to effectuate such termination. If the board of trustees determines that the termination would cause the Agency or any of its Funds to be in violation of the minimum annual premium requirement or would compromise the Agency's or any of its Fund's' financial integrity, the Agency shall promptly notify the Commissioner. Voluntary termination is prohibited and void unless:

   1. (a) the Member has participated in the Fund continuously for a minimum period of two complete Fund years, or such longer period as the Agency may require; and
   2. (b) all outstanding premiums and assessments owed by the Member have been paid.

4. (4) The Agency Board of Trustees may terminate the membership of any Member who fails to abide by the Agency bylaws, the membership agreement, O.C.G.A. Chapter 20-2, O.C.G.A. Chapter 36-85, or these Regulations.

   1. (a) A Member may be involuntarily terminated for failure to pay its proportionate share or any premiums or installments thereof due to the Agency or any of its authorized Funds or for failure otherwise to discharge its obligations to the Agency or any of its authorized Funds when due. Written notice stating the time when the termination will be effective, which shall not be less than fifteen (15) days from the date of the notice or such other longer period as may be provided in the Agency bylaws or by statute, may be delivered in person or by registered mail to the last address such Member has on file with the Agency. Such notice may or may not be accompanied by a tender of the unearned premium paid by the Member, calculated on a pro rata basis. If such tender is not made simultaneously with such notice, it shall be made within fifteen (15) days of notice of termination, unless an audit or rate investigation is required, in which case such tender shall be made as soon as practicable.
   2. (b) Other reasons for involuntary termination require forty-five (45) days written notice from the Agency to the Member. Such notice shall be delivered in person to the affected Member or be sent by registered mail to the last address such Member has on file with the Agency.
   3. (c) The Commissioner shall be sent, via registered mail, a copy of each and every involuntary termination notice sent by the Agency to any of its Members. Such notice to the Member and to the Commissioner shall be mailed at the same time.
   4. (d) Annually, an Agency must compare the status and experience of each Fund Member with the criteria for expulsion as related in the Agency bylaws. Such review shall occur at least annually or as required by the board of trustees.
5. (5) Any Member who either voluntarily terminates its membership or is involuntarily terminated from membership in an Agency or any of its Funds, shall remain jointly and severally liable for all obligations of the Agency of any of its Funds to which that Member belonged as of the date of such termination.
6. (6) An updated membership listing shall be enclosed with each Fund's quarterly and annual financial statement.

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 "Membership" was filed on April 10, 1987; effective April 30, 1987.

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