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O.C.G.A. § 33-9-29 — Issuance of remedial orders by Commissioner generally; suspension or revocation of certificate of authority or license | Georgia Code

O.C.G.A. § 33-9-29 (2018) Copy Cite Official Site Syfertize CourtListener Scholar Amendments

TITLE 33 INSURANCE

Section 9. Regulation of Rates, Underwriting Rules, and Related Organizations, 33-9-1 through 33-9-44.

ARTICLE 2 UNFAIR CLAIMS SETTLEMENT PRACTICES

33-9-29. Issuance of remedial orders by Commissioner generally; suspension or revocation of certificate of authority or license.

If after a hearing pursuant to Code Section 33-9-28 the Commissioner finds:

That any rate, rating plan, or rating system violates the applicable provisions of this chapter, he may issue an order to the insurer or rating organization which has been the subject of the hearing specifying in what respects the violation exists and stating when, within a reasonable period of time, the further use of the rate or rating system by the insurer or rating organization in contracts of insurance made thereafter shall be prohibited and may further order that the portion of premiums received from current policyholders as a result of the most recent rate increase at the time the notice of such hearing is issued shall be refunded to the policyholders;
That an insurer, rating organization, advisory organization, or a group, association, or other organization of insurers which engages in joint underwriting or joint reinsurance is in violation of the provisions of this chapter applicable to it other than the provisions dealing with rates, rating plans, or rating system, he may issue an order to the insurer, organization, group, or association which has been the subject of the hearing specifying in what respects the violation exists and requiring compliance within a reasonable time thereafter;
That the violation of this chapter applicable to it by any insurer or rating organization which has been the subject of the hearing was willful, he may suspend or revoke, in whole or in part, the certificate of authority of each insurer or the license of each rating organization with respect to the class of insurance which has been the subject matter of the hearing;
That any rating organization has willfully engaged in any fraudulent or dishonest act or practices, he may suspend or revoke, in whole or in part, the license of the organization in addition to any other penalty provided in this chapter.

(Code 1933, § 56-530, enacted by Ga. L. 1967, p. 684, § 1; Ga. L. 1986, p. 698, § 3; Ga. L. 1987, p. 3, § 33.)

JUDICIAL DECISIONS

Commissioner may prohibit rate but not require refund of collected premiums.

- Under paragraph (1) of this section the limit of the Commissioner's authority where the Commissioner finds a rate to be violative of this chapter is to direct that the rate shall thereafter be prohibited. The Commissioner cannot order the insurer to make refunds of excessive premiums already paid. Allstate Ins. Co. v. Bentley, 122 Ga. App. 738, 178 S.E.2d 700 (1970), modified, 227 Ga. 708, 182 S.E.2d 770 (1971) (decided prior to 1986 amendment).

The Commissioner has authority only to prohibit the use of rates and not to order refunds of premiums already collected under rates subsequently prohibited. Caldwell v. Insurance Co. of N. Am., 235 Ga. 141, 218 S.E.2d 754 (1975) (decided prior to 1986 amendment).

RESEARCH REFERENCES

Am. Jur. 2d.

- 43 Am. Jur. 2d, Insurance, § 20 et seq.

C.J.S.

- 44 C.J.S., Insurance, § 57.

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This Georgia Code resource is curated by Graham W. Syfert, 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.