Georgia Certification Application Checklist

Prior to certification, the Applicant's Application must be posted to the Department's website for four weeks (application will be posted here). Upon completion of the application process, the Commissioner will issue a written notice to the assuming insurer regarding the approval or disapproval of the application and the rating assigned. (Ga. Reg. 120-2-78-.08(2)(b)).

Submission Instructions

Legal Citation Narrative of Requirement

Required Fees

O.C.G.A. § 33-8-1 Company submits an initial application accompanied by a filing and processing charge of $600.00 and shall pay, on or before the first day of March, an annual filing and processing charge of $700.00 for each year thereafter.

Eligibility Requirements

Ga. Reg. 120-2-78-.08(2)(c)(1)

Company must be domiciled and licensed to transact insurance or reinsurance in a Qualified Jurisdiction.

Ga. Reg. 120-2-78-.08(2)(c)(2)

Company must have and maintain capital and surplus, or its equivalent, of no less than $250,000,000, calculated in accordance with Ga. Reg. 120-2-78-.08(2)(d)(8).

Ga. Reg. 120-2-78-.08(2)(c)(3)

Company must have and maintain financial strength ratings from two or more acceptable rating agencies. The ratings shall be based on interactive communication between the rating agency and the assuming insurer. Acceptable rating agencies include: (1) Standard & Poor’s (S&P); (2) Moody’s Investors Service (Moody’s); (3) Fitch Ratings (Fitch); (4) A.M. Best Company (Best); or (5) any other nationally recognized statistical rating organization acceptable to the Commissioner.

Ga. Reg. 120-2-78-.08(2)(d)(1)

The maximum rating that a certified reinsurer may be assigned will correspond to its financial strength rating as outlined in Table 1. The commissioner shall use the lowest financial strength rating received from an approved rating agency in establishing the maximum rating of a certified reinsurer. A failure to obtain or maintain at least two financial strength ratings from acceptable rating agencies will result in loss of eligibility for certification.

Ga. Reg. 120-2-78-.08(2)(d)(2)

The business practices of the certified reinsurer in dealing with its ceding insurers, including its record of compliance with reinsurance contractual terms and obligations.

Ga. Reg. 120-2-78-.08(2)(d)(3)

For a certified reinsurer domiciled in the United States, the most recent applicable NAIC Annual Statement Blank, and either Schedule F (for a property/casualty reinsurer) or Schedule S (for a life or health reinsurer).

Ga. Reg. 120-2-78-.08(2)(d)(4)

For a certified reinsurer not domiciled in the United States, the most recent Form CR-F (for a property/casualty reinsurer) or Form CR-S (for a life or health reinsurer), as such forms shall be prescribed by the Commissioner.

Ga. Reg. 120-2-78-.08(2)(d)(5)

The reputation of the certified reinsurer for prompt payment of claims under reinsurance agreements, based on an analysis of ceding insurers' Schedule F reporting of overdue reinsurance recoverables, including the proportion of obligations that are more than ninety (90) days past due or are in dispute, with specific attention given to obligations payable to companies that are in administrative supervision or receivership.

Ga. Reg. 120-2-78-.08(2)(d)(6)

Disclose any current regulatory actions against the certified reinsurer and any regulatory actions that were finalized within twelve (12) months of the date of this application.

Ga. Reg. 120-2-78-.08(2)(d)(7)

Company must provide the report of the independent auditor on the financial statements of the insurance enterprise, on the basis described in Ga. Reg. 120-2-78-.08(2)(d)(8).

Ga. Reg. 120-2-78-.08(2)(d)(8)

For certified reinsurers not domiciled in the U.S., • audited financial statements (audited U.S. GAAP basis if available, audited IFRS basis statements are allowed but must include an audited footnote reconciling equity and net income to a U.S. GAAP basis, or, with the permission of the commissioner, audited IFRS statements with reconciliation to U.S. GAAP certified by an officer of the company), • regulatory filings, and • actuarial opinion (as filed with the non-U.S. jurisdiction supervisor). Upon the initial application for certification, the commissioner will consider audited financial statements for the last three (3) years filed with its non-U.S. jurisdiction supervisor;

Ga. Reg. 120-2-78-.08(2)(d)(9)

Disclose the liquidation priority of obligations to a ceding insurer in the certified reinsurer’s domiciliary jurisdiction in the context of an insolvency proceeding.

Ga. Reg. 120-2-78-.08(2)(d)(10)

A certified reinsurer's participation in any solvent scheme of arrangement, or similar procedure, which involves U.S. ceding insurers. The commissioner shall receive prior notice from a certified reinsurer that proposes participation by the certified reinsurer in a solvent scheme of arrangement

Ga. Reg. 120-2-78-.08(2)(d)(11)

Any other information deemed relevant by the commissioner.

Required Forms and Certifications

Ga. Reg. 120-2-78-.08(2)(f)

Submit a properly executed Form CR-1.

Ga. Reg. 120-2-78-.08(2)(g)(6)

Submit a certification from its domestic regulator that the certified reinsurer is in good standing and maintains capital in excess of the jurisdiction’s highest regulatory action level.