O.C.G.A. § 33-36-20 (2019)
Liability of pool to claimants and electing insureds in emergency circumstances; definitions; exceptions
Statute text
(a) It is the policy of this state to protect insureds and their claimants from liability as a result of the insolvency of insurers. In furtherance of this policy, it is the intent of the legislature, notwithstanding any provision of law to the contrary, that the Georgia Insurers Insolvency Pool shall be liable to claimants and electing insureds in emergency circumstances.
(b) As used in this Code section, the term:
(1) "Electing insured" means any insured under a workers' compensation insurance policy that is impacted by an emergency circumstance. Such term shall include but not be limited to governmental insureds and other insureds under a workers' compensation insurance policy impacted by an emergency circumstance whose net worth exceeds $25 million as of December 31 of the year preceding the filing of a claim.
(2) "Emergency circumstance" means a circumstance in which an association or industrial insured captive insurance company, including such a captive company that subsequently was authorized to transact business pursuant to Chapter 3 of this title, that is issuing, or which has issued, workers' compensation insurance contracts and has been declared insolvent.
(3) "Emergency claimant" means any third-party claimant, under a workers' compensation insurance policy, who is impacted by an emergency circumstance and whose employer has, by a court of competent jurisdiction, been declared bankrupt or insolvent.
(c) Any electing insured whose net worth is less than $25 million as of December 31 of the year preceding the filing of a claim may be shielded from liability by the pool and have any workers' compensation claims filed against such electing insured covered by the pool, provided said electing insured pays $10,000.00 per claim to the insolvency pool prior to October 1, 2010. Any electing insured whose net worth exceeds $25 million as of December 31 of the year preceding the filing of a claim may be shielded from liability by the pool and have any workers' compensation claims filed against such electing insured covered by the pool, provided said electing insured pays $50,000.00 per claim to the insolvency pool prior to October 1, 2010. Claims of all emergency claimants shall be covered by the insolvency pool.
(d) Claimants shall retain the right to pursue claims against any insured that is not an electing insured.
History
(Code 1981, § 33-36-20, enacted by Ga. L. 2010, p. 1085, § 3/HB 1364.)
Annotations
JUDICIAL DECISIONS
Employee's failure to prove insolvency. - Employee seeking workers' compensation from the Georgia Insurers Insolvency Pool failed to prove that the employer was insolvent as required for recovery under O.C.G.A. § 33-36-20(b)(2) and (3) based on the owner's non-credible testimony that the owner had sold the company and that the buyer had defaulted on the buyer's loans from the owner. Reece v. Ga. Insurers Insolvency Pool, 324 Ga. App. 437, 750 S.E.2d 746 (2013).
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CHAPTER 37
INSURERS REHABILITATION AND LIQUIDATION
Article 1
General Provisions.
33-37-1. Construction and purpose of chapter.
33-37-2. Applicability.
33-37-3. Definitions.
33-37-4. Jurisdiction; exclusiveness of remedy; venue; change of venue.
33-37-5. Grounds for restraining orders and injunctions; rights regarding collateral pledged by insurer-member; process and timeline; options for renewal or restructuring of loan.
33-37-6. Cooperation with Commissioner mandated; penalties for failure to cooperate.
33-37-7. Effect of enactment of chapter on pending proceedings [Repealed].
33-37-8. Prohibition against release from proceedings or continuing business.
33-37-8.1. Immunity of receivers and employees; indemnification; attorney's fees; approval of settlement.
Article 2
Procedure for Delinquency Proceeding.
33-37-9. Commencing formal delinquency proceeding; ex parte seizure order; hearing and review of order; notice.
33-37-10. Confidentiality of proceedings.
Article 3
Procedure for Rehabilitation.
33-37-11. Petition for rehabilitation; grounds.
33-37-12. Order to rehabilitate; Commissioner to be appointed as rehabilitator; effect of order.
33-37-13. Authority of rehabilitator; additional remedies; rehabilitation plan.
33-37-14. Effect of rehabilitation order on pending litigation; standing of guaranty association to participate in rehabilitation.
33-37-15. Petition for order of liquidation; defense; payment of costs and expenses; order terminating rehabilitation.
33-37-16. Grounds for order of liquidation.
33-37-17. Commissioner appointed as liquidator; seizure and administration of assets; effect of filing order; petition for declaration of insolvency; financial reports; plan for continued performance pending appeal.
33-37-18. Termination of policy coverage.
33-37-19. Petition for dissolution of corporate existence.
33-37-20. Powers of liquidator.
33-37-21. Notice of liquidation.
33-37-22. Responsibility of agent to provide information; penalty for violation.
33-37-23. Stay of collateral proceedings against insurer; authority of liquidator to intervene in, and defend, out-of-state action.
33-37-24. Time for filing list of assets; reducing assets to liquidity.
33-37-25. Fraudulent transfers or obligations incurred; avoidance.
33-37-26. Transfer of property in good faith; recording copy of petition as notice of seizure of property.
33-37-26.1. Limitations on ability of receiver to void transfer of certain property in connection with federal home loan bank security agreement; transfer avoidance under certain circumstances.
33-37-27. Preferential transfers; liens; when transfer perfected; avoidance; transfer for new and contemporaneous consideration; payments to attorneys; personal liability of participants.
33-37-28. Disallowing preferred creditor's claims.
33-37-29. Mutual debts and credits.
33-37-30. Liquidator's report to court; assessment against members of insurer; procedure when assessment not paid.
33-37-31. Liability of reinsurers.
33-37-32. Premiums due during pendency of liquidation action; penalties for violation; notice; right to appeal.
33-37-33. Application for approval of proposal to disburse assets; notice.
33-37-34. Proof of claims; late filing.
33-37-35. Contents of proof of claim; effect of judgment or order within four months of, or after, filing petition for liquidation.
33-37-36. Third-party contingent claim; claims due in future; claims under employment contracts.
33-37-37. Third-party claim against insured.
33-37-38. Procedure when claim denied.
33-37-39. When third person subrogated to rights of creditor.
33-37-40. Determining value of security held by secured creditor.
33-37-41. Priority of distribution of claims.
33-37-42. Authority of liquidator to compound, compromise, or negotiate claims; report to court.
33-37-43. Payment of distributions.
33-37-44. Disposition of unclaimed funds subject to distribution.
33-37-45. Liquidator's application for discharge.
33-37-46. Reopening liquidation proceedings.
33-37-47. Retention or destruction of records.
33-37-48. Receivership audits.
Article 4
Liquidation Proceedings.
33-37-49. Commissioner appointed as conservator of alien or foreign insurer's property; grounds.
33-37-50. Commissioner appointed as liquidator of foreign or alien insurer's assets; grounds.
33-37-51. Title to property of insurer domiciled in another state; rights of resident claimants.
33-37-52. Commissioner as ancillary receiver for insurer not domiciled in this state.
33-37-53. Commissioner's cooperation with officials of domiciliary state of foreign or alien insurer.
33-37-54. Rights of nonresident claimants in proceeding against domiciliary insurer.
33-37-55. Rights of resident claimants in proceeding in another state against nondomiciliary insurer.
33-37-56. Stay of proceedings during pendency of liquidation proceeding.
33-37-57. Superiority of order of distribution issued by domiciliary state; priority of payment and claims; rights of secured creditors.
33-37-58. Failure of ancillary receiver to transfer assets.
Annotations
Cross references. - Dissolution of secretary of state corporations generally, § 14-4-160 et seq.
Editor's notes. - Ga. L. 1991, p. 1424, effective July 1, 1991, repealed the chapter formerly codified at this chapter and enacted the current chapter. The former chapter consisted of §§ 33-37-1 through 33-37-50 and was based on Ga. L. 1960, p. 289, § 1; Ga. L. 1976, p. 1076, §§ 1, 2; Ga. L. 1981, Ex. Sess. p. 8; Ga. L. 1982, p. 3, § 331; Ga. L. 1985, p. 1087, § 6; Ga. L. 1986, p. 10, § 33; and Ga. L. 1990, p. 8, § 33.
Law reviews. - For annual survey article discussing developments in insurance law, see 51 Mercer L. Rev. 313 (1999). For note on 1991 revision of this chapter, see 8 Ga. St. U.L. Rev. 89 (1992).
JUDICIAL DECISIONS
Cited in Preferred Ins. Co. v. Bentley, 223 Ga. 735, 157 S.E.2d 737 (1967); Preferred Ins. Co. v. Bentley, 225 Ga. 160, 166 S.E.2d 340 (1969).
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ARTICLE 1
GENERAL PROVISIONS