Rule 120-2-40-.12. Administrator's Bond and Insurance

(1) Each administrator shall have and maintain a fidelity bond in the amount of $100,000 written by an insurer authorized to transact insurance in this State and submitted on Form RMA-5 entitled "Administrator's Fidelity Bond for Public Self-Insurance Fund," attached hereto and incorporated herein as "Exhibit E'' of this Regulation. (2) Each administrator shall obtain errors and omissions insurance coverage or other appropriate liability insurance written by an insurer authorized to transact insurance in this State, in an amount of at least $100,000. (3) Any policy written in accordance with paragraph (2) of this Rule shall be for a term of at least one year and shall contain provisions that: (a) cancellation or termination of the policy is not effective except upon sixty (60) days written notice by registered mail to the other party to the policy and to the Commissioner and; (b) the policy is automatically renewable at the expiration of the policy period except upon sixty (60) days written notice by registered mail by the party not renewing the policy to the other party to the policy and to the Commissioner. (4) Compliance by the administrator with paragraphs (1) and (2) of this Rule is a prerequisite to approval of its application by the Commissioner. (5) Upon approval by the Commissioner, bonds or policies may be written by an eligible surplus lines insurer. Cite as Ga. Comp. R. & Regs. R. 120-2-40-.12
Authority: O.C.G.A. §§ 20-2-2016, 33-2-9; 36-85-16, 50-13-21.
History. Original Rule entitled "Administrator's Bond and Insurance" was filed on April 10, 1987; effective April 30, 1987.
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.)
Amended: F. Aug. 4, 2025; eff. Aug. 24, 2025.