O.C.G.A. § 33-12-2 (2019)
Purposes for which deposits to be held
Deposits shall be held as follows:
(1) When the deposit is required for authority to transact insurance in this state, the deposit shall be held for the protection of all the insurer’s policyholders or others entitled to the proceeds of policies within the United States, provided that this paragraph shall not apply to a deposit made under Code Section 33-3-9;
(2) When the deposit is required pursuant to the laws of another state, commonwealth, territory, district of the United States, province, or country, the deposit shall be held for such purposes as are required by such laws and as specified by the Commissioner at the time the deposit is made; or
(3) When the deposit is required pursuant to the retaliatory provision, Code Section 33-3-26, the deposit shall be held for purposes as specified in the Commissioner’s order requiring the deposit.
History
Ga. L. 1887, p. 113, § 12; Civil Code 1895, § 2060; Civil Code 1910, § 2449; Code 1933, § 56-315; Code 1933,
§ 56-1102, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 1983, p. 3, § 24; Ga. L. 1984, p. 22, § 33.
Annotations
JUDICIAL DECISIONS Editor’s notes. - In light of the similarity of the statutory provisions, annotations decided under former Code 1895, §§ 2035 to 2043 and former Code 1933, §§ 22-1210 and 56-301 et seq. are included in the annotations for this Code section. Deposit is to prevent action against dissolved corporation being futile. - The bonds which a foreign insurance corporation doing business in this state is required to deposit are to prevent an action against a dissolved corporation from being futile and unavailing. Manufacturing Lumbermen’s Underwriters v. South Ga. Ry., 57 Ga. App. 699, 196 S.E. 244 (1938) (decided under former Code 1933, §§ 22-1210 and 56-301 et seq.). Deposits primary purpose to secure payment of losses. - The primary pur-
pose 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).
RESEARCH REFERENCES Am. Jur. 2d. - 43 Am. Jur. 2d, Insurance, § 37. C.J.S. - 44 C.J.S., Insurance, § 77.