O.C.G.A. § 33-12-13 (2019)
Proceedings upon appointment of receivers for satisfaction of multiple claims
If receiverships are ordered for the purpose of holding securities for the future satisfaction of more than one claim, the Commissioner shall retain securities deposited by the insurer and apply the securities to the judgments in the order of his appointments as receiver as provided in Code Section 33-12-11. If the receiver determines that the securities the insurer has on deposit are insufficient to cover the claim and if there is another receivership or there are other receiverships in this state against the same insurer in which distribution has not been completed, the Commissioner shall institute proceedings for a general receivership under Chapter 37 of this title.
History
Ga. L. 1887, p. 113, § 4; Civil Code 1895, § 2038; Ga. L. 1896, p. 58, § 3; Civil Code 1910, §§ 2422, 2559;
Code 1933, §§ 56-304, 56-1109; Code 1933, § 56-1113, enacted by Ga. L. 1960, p. 289, § 1.
Annotations
JUDICIAL DECISIONS Editor’s notes. - In light of the similarity of the statutory provisions, annotations decided under former Code 1895, §§ 2035 to 2043 are included in the annotations for this Code section. Deposit is primarily to secure payment of losses, which have priority. - The primary purpose of the deposit is to secure the payment of fire losses, which are the only losses ‘‘insured against,’’ although it also secures, secondarily, other claims arising on policies, such as the
repayment, after the termination of the risk, of unearned premiums paid; even when a company becomes insolvent and the deposit is brought into a court of equity for distribution, fire losses are entitled to priority of payment from the fund over claims for unearned premiums. Kelsey v. Cogswell, 112 F. 599 (N.D. Ga. 1901) (decided under former Code 1895, §§ 2035 to 2043); Manufacturing Lumbermen’s Underwriters v. South Ga. Ry., 57 Ga. App. 699, 196 S.E. 244 (1938).