- Georgia does not maintain a list of eligible surplus lines insurers.
- Georgia does not have a Surplus Lines Association.
- Georgia does not have an Export List.
- Georgia does have an industrial insured exemption with respect to captive insurers only (see Appendix C) but otherwise recognizes the exempt commercial policyholder exemption under NRRA.
- Surplus lines tax: If a surplus lines policy covers risks or exposures located or to be performed both in and out of Georgia, the sum payable shall be computed based on (i) an amount equal to 4% of that portion of premiums allocated to Georgia plus (ii) an amount equal to the portion of premiums allocated to other states or territories on the basis of the tax, rates and fees applicable to properties, risks, or exposures located or to be performed outside Georgia.
- Georgia has not affiliated with any existing compact (HB 413) However, Georgia enacted legislation in 2011 authorizing the Governor, in consultation with the Insurance Commissioner, to enter into a tax sharing agreement. The agreement must substantially follow the form of either SLIMPACT or NIMA as they exist on July 1, 2011. The Governor must select “the agreement, if any, that provides the best financial advantage to the state.” Effective: July 1, 2011.
Eligibility and Filing Requirements (Foreign Insurers Only):
Surplus lines brokers may not place coverage with a nonadmitted insurer unless, at the time of placement, the nonadmitted insurer:
- Is authorized to write such insurance in its domiciliary jurisdiction; and
- Possesses capital and surplus, or its equivalent under the laws of its domiciliary jurisdiction, that equals the greater of the minimum capital and surplus requirements under the laws of Georgia or $15 million. § 33-5-25(b)(1)(A).
The Commissioner may waive the minimum capital and surplus requirement for a nonadmitted insurer if he makes an affirmative finding of acceptability after considering: quality of management, capital and surplus of a parent company, company underwriting profit and investment trends, market availability, and company record and reputation within the industry. The director may not make a finding of acceptability if the insurer’s capital and surplus is under $4.5 million. § 33-5-25(b)(1)(A).
Eligibility and Filing Requirements (Alien Insurers Only):
Georgia utilizes the NAIC Quarterly List of Alien Insurers.
Types of Insurance Exempted from Surplus Lines Regulation:
- Insurance on property or operation of railroads engaged in interstate commerce.
- Insurance of aircraft owned or operated by manufacturers of aircraft or operated in scheduled interstate flight, or cargo of the aircraft, or against liability, other than workers’ compensation and employers’ liability, arising out of the ownership, maintenance, or use of the aircraft.
Other Comments or Requirements
- Surplus lines insurers are required to furnish their brokers with a copy of their annual statement/report.
- Every insurance contract procured and delivered as a surplus lines coverage must be initialed by or bear the name of the surplus lines broker who procured it and must have printed or stamped upon it the following:
“This contract is registered and delivered as a surplus line coverage under the Surplus Line Insurance Law, O.C.G.A. Chapter 33-5.”