Rule 120-2-40-.11. Surplus

An Agency shall possess and thereafter maintain a minimum surplus of not less than $150,000 in cash or cash equivalent per class of insurance, i.e., accident, disability, supplemental medical, general liability, motor vehicle liability and property damage. The Commissioner may, for the protection of the Members, require higher amounts of surplus in relationship to a Fund's premium volume or liability. Such surplus may be met by a surety bond written by an insurer authorized to transact surety insurance in Georgia or upon approval by the Commissioner by an eligible surplus lines insurer. The bond must be submitted on Form RMA-4 entitled "Risk Management Agency Bond," attached hereto and incorporated herein as "Exhibit D" of this Regulation. A surety bond must be replaced by cash or cash equivalent within sixty (60) months of the date said bond was submitted to the Commissioner to satisfy the requirements of this Rule. At the Commissioner's discretion, the $150,000 minimum surplus requirement may be waived for any Fund operating for purposes of jointly purchasing group accident, disability or supplemental medical insurance coverage from an insurer licensed in Georgia or upon approval by the Commissioner from an eligible surplus lines insurer for the benefit of the Fund's Members.

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

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