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O.C.G.A. § 33-11-21 — Authorized investments generally - Corporate stocks | Georgia Code
O.C.G.A. § 33-11-21 (2018) Copy Cite Official Site Syfertize CourtListener Scholar Amendments

TITLE 33 INSURANCE

Section 11. Investments, 33-11-1 through 33-11-89.

ARTICLE 1 INVESTMENTS OF CERTAIN INSURERS

33-11-21. Authorized investments generally - Corporate stocks.

An insurer may invest in nonassessable dividend-paying stocks, common or preferred, of any solvent corporation other than a corporation engaged solely in the business of operating real estate or a corporation having substantially all of its assets invested in the shares of such corporation, created or existing under the laws of the United States of America or of any state or of the District of Columbia, provided cash dividends on the common stocks shall have been paid out of current earnings in at least three of the last five years preceding the purchase.

(Code 1933, § 56-1020, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 1999, p. 592, § 6.)

Cross references.

- Securities regulation, T. 10, C. 5.

OPINIONS OF THE ATTORNEY GENERAL

Investment in Puerto Rican corporation not authorized.

- An insurer would not be authorized under this section to invest in the corporate stock of a corporation organized under the laws of the Commonwealth of Puerto Rico. 1971 Op. Att'y Gen. No. 71-50.

Clause making investments eligible if legal on date of title inapplicable to reserve requirements.

- The drafters of this title did not intend that the provisions of former Code 1933, § 56-1002(2) (see now O.C.G.A. § 33-11-2), should be applicable to the reserve distribution requirements of former Code 1933, § 56-1005 (see now O.C.G.A. § 33-11-5); inasmuch as the Legislature elsewhere authorized the holding of common stocks, subject to somewhat liberalized restrictions, by this section, they clearly did not intend that the generalized "savings clause" contained in former Code 1933 § 56-1002(2), apply to the specific quantitative restrictions on the holding of common stocks contained in the reserve distribution requirements of former Code 1933, § 56-1005; stated differently, the Legislature, while liberalizing the restrictions upon the quality of common stocks which could be held, on the one hand, imposed more rigid restrictions with respect to the quantitative portfolio distribution of such common stock holdings, on the other hand. 1971 Op. Att'y Gen. No. 71-170.

The proper application of the "savings clause" of former Code 1933, § 56-1002(2) (see now O.C.G.A. § 33-11-2), was to that general group of assets, including common stock, which an insurer might lawfully hold, insofar as the qualitative restrictions contained in this title raised or altered the qualitative restrictions of the prior law; any attempt to apply the "savings clause" of former Code 1933, § 56-1002(2), to the reserve distribution requirements of former Code 1933, § 56-1005 (see now O.C.G.A. § 33-11-5) rendered the latter section largely meaningless and was inconsistent with the general tenor of this section. 1971 Op. Att'y Gen. No. 71-170.

RESEARCH REFERENCES

Am. Jur. 2d.

- 43 Am. Jur. 2d, Insurance, § 58.

C.J.S.

- 44 C.J.S., Insurance, § 72.

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This Georgia Code resource is curated by Graham W. Syfert, Esq., a personal injury and workers' compensation attorney admitted in Georgia (State Bar of Georgia No. 881027, since 2006) and Florida. Attorney Syfert regularly works with Title 33 in the context of Georgia insurance coverage law and represents clients throughout Northeast Florida and South Georgia. For legal consultation, call 904-383-7448.