TITLE 33 INSURANCE

Section 41. Captive Insurance Companies, 33-41-1 through 33-41-24.

ARTICLE 4 LIQUIDATION PROCEEDINGS

33-41-9. Letters of credit.

1. Any letter of credit used to meet the requirements set forth in Code Sections 33-41-8, 33-41-12, and 33-41-14 shall be:
   1. Clean, irrevocable, and unconditional;
   2. Issued by a bank approved by the Commissioner, which is either a bank chartered by the State of Georgia or a national bank which is a member of the Federal Reserve System;
   3. Presentable and payable within the State of Georgia; and
   4. Provided in conformity with any other requirements established by the Commissioner.
2. The Commissioner may require any captive insurance company to draw upon its letters of credit at any time, in amounts determined by the Commissioner, if the Commissioner determines that such action is necessary for the protection of the interests of the captive insurance company's policyholders.

(Code 1981, §33-41-9, enacted by Ga. L. 1988, p. 966, § 2; Ga. L. 2016, p. 825, § 1/SB 347.)

The 2016 amendment, effective July 1, 2016, added "shall be" at the end of the introductory language in subsection (a); substituted "Clean" for "Must be clean" at the beginning of paragraph (a)(1); substituted "Issued" for "Must be issued" at the beginning of paragraph (a)(2); substituted "Presentable" for "Must provide that it is presentable" at the beginning of paragraph (a)(3); and substituted "Provided" for "Must be provided" at the beginning of paragraph (a)(4).