Rule 120-2-40-.14. Premiums

1. (1) During the initial year of operation of a Fund providing general liability, motor vehicle liability or property damage insurance protection, each Member shall pay into a designated depository within this State, a minimum of thirty-five percent (35%) of the Member's estimated annual Fund premium or such higher amount as may be specified in the Agency bylaws. Proof of compliance with this paragraph is a prerequisite to approval by the Commissioner of the Agency's application for a certificate of authority.
2. (2) During the initial year of operation of a Fund providing general liability, motor vehicle liability or property damage insurance protection, each Member shall pay the balance of the Member's first year estimated Fund premium within six (6) months after the commencement of operation of the applicable Fund, via regular equal monthly or quarterly payments, or sooner if authorized by the Agency bylaws.
3. (3) For each subsequent year of operation of a Fund providing general liability, motor vehicle liability or property damage insurance protection, each Fund Member shall pay at least twenty-five percent (25%) of the Member's annual Fund premium within thirty (30) days of the beginning of the Fund year and shall pay the balance of the premium within the first six (6) months of the insurance year, via regular equal monthly or quarterly payments, or sooner if authorized by the Agency bylaws.
4. (4) The Agency shall not allow advance premium discounts.
5. (5) Funds 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 Funds' Members and where the Fund assumes no risk, premium payments collected from Members and remitted to the insurer shall be in accordance with instructions from the insurer. For Funds providing accident, disability, or supplemental medical insurance coverage, and meeting minimum surplus requirements as established by the Commissioner, Fund Members may pay on installment schedules established by the Agency Board of Trustees or the Administrator.

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

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