2020 Georgia Code
Title 33 - Insurance
Chapter 3 - Authorization and General Requirements for Transaction of Insurance
§ 33-3-7. Requirement of Surplus for New Insurers
In addition to the minimum paid-in capital or minimum surplus of insurers required by this title, an insurer shall possess when first authorized in this state and thereafter maintain surplus or additional surplus equal to the larger of $1.5 million if a stock, mutual, or reciprocal insurer or 50 percent of its paid-in capital stock if a stock insurer or of its surplus if a mutual or reciprocal insurer otherwise required under Code Section 33-3-6 for the kinds of insurance to be transacted.
(Code 1933, § 56-307, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 1982, p. 3, § 33; Ga. L. 1984, p. 1080, § 2; Ga. L. 1990, p. 1275, § 3; Ga. L. 1992, p. 1539, § 2; Ga. L. 1995, p. 637, § 2.)
Editor's notes.- Ga. L. 1990, p. 1275, § 7, not codified by the General Assembly, provides that the 1990 amendment is "effective for purposes of application to new or newly admitted insurers on January 1, 1991, and effective for all purposes on July 1, 1992."
JUDICIAL DECISIONS
Insurance law not applicable to suretyship contract.
- Insurance law was not applicable in a case involving liability under a suretyship contract. American Mfg. Mut. Ins. Co. v. Tison Hog Mkt., Inc., 182 F.3d 1284 (11th Cir. 1999), cert. denied, 531 U.S. 819, 121 S. Ct. 59, 148 L. Ed. 2d 26 (2000).
Cited in Piedmont Life Ins. Co. v. Bell, 109 Ga. App. 251, 135 S.E.2d 916 (1964).
OPINIONS OF THE ATTORNEY GENERAL
Section governs in case of conflict with the more general mandatory refusal, revocation, or suspension provision.
- As a matter of statutory construction, the more specific statute, i.e., this section, governs in case of a seeming conflict with a more general one such as paragraph (2) of former Code 1933, § 56-316 (see O.C.G.A. § 33-3-19). 1963-65 Op. Att'y Gen. p. 216.
Surplus is initial, but not continuing, requirement.- The surplus is required in order to ensure that newly formed insurance companies will be financially able to survive their first years of operation; therefore, it is an initial requirement but not a continuing one. 1963-65 Op. Att'y Gen. p. 216.
It is not synonymous with "capital."
- The words "deficiency in assets" in paragraph (2) of former Code 1933, § 56-316 (see O.C.G.A. § 33-3-19) are intended to apply primarily to such items as "impairment of capital" and "insufficiency of policy reserves"; if both capital and expendable surplus were required to be maintained at all times they would be synonymous; the separate provisions for "capital" and for "expendable surplus" make it evident that the two are not synonymous. 1963-65 Op. Att'y Gen. p. 216.
Charter application need not set minimum capital.
- Since former Code 1933, § 56-306 (see O.C.G.A. § 33-3-6) provides the minimum amount of capital with which the insurer may obtain a license and commence business, it would not be necessary to provide for a minimum in the application for a charter; it would only be necessary to set the authorized capital in accordance with the provisions of § 56-306 and this section. 1963-65 Op. Att'y Gen. p. 451.
Corporation may commence business on complying with statutes.
- An insurance corporation may perfect its organization and lawfully obtain a license and commence the insurance business provided it meets the capital paid-in and expendable surplus requirements of former Code 1933, § 56-306 (see O.C.G.A. § 33-3-6) and this section; it would not be necessary to have the entire authorized capital stock subscribed even though the charter states no minimum with which the corporation shall begin business, since this chapter sets the minimum. 1963-65 Op. Att'y Gen. p. 451.
RESEARCH REFERENCES
Am. Jur. 2d.
- 43 Am. Jur. 2d, Insurance, § 37.
C.J.S.- 44 C.J.S., Insurance, § 162 et seq.
