Georgia § 33-41-101 - Definitions.

§ 33-41-101. Definitions.

As used in this article, the term: "General account" means all the assets and liabilities of a sponsored captive insurance company that are not attributable to a protected cell. "Incorporated protected cell" means a protected cell that is established as a stock corporation or manager-managed limited liability company separate from the sponsored captive insurance company of which it is a part. "Participant" means a person, and any affiliates thereof, that is insured or reinsured by a sponsored captive insurance company, where the losses of the participant are limited through a participant contract to such participant's protected cell assets or to the pro rata share of the assets of one or more protected cells that are identified in such participant contract. "Participant contract" means a contract by which a sponsored captive insurance company insures or reinsures the risks of a participant, or the controlled unaffiliated business thereof, and limits the losses to the participant's protected cell assets or to the pro rata share of the assets of one or more protected cells that are identified in such participant contract. "Protected cell" means a separate and distinct account or accounts established by a sponsored captive insurance company in which an identified pool of assets are maintained for one or more participants in accordance with the terms of one or more participant contracts to fund the liability of the sponsored captive insurance company insured or assumed on behalf of such participants as set forth in such participant contracts. A protected cell may be an incorporated protected cell or an unincorporated protected cell. "Protected cell assets" means all assets, contract rights, and general intangibles identified with and attributable to a specific protected cell that may not be used to pay any expenses or claims other than those attributable to such protected cell. "Protected cell liability" means all liabilities and other obligations identified with and attributable to a specific protected cell. "Sponsor" means any person, other than a risk retention group, that is approved by the Commissioner, in the exercise of his or her sole discretion, to organize and operate a sponsored captive insurance company and to provide all or part of its required capital and surplus. "Sponsored captive insurance company" means any domestic stock insurer or manager-managed limited liability company formed by one or more sponsors having been granted a certificate of authority pursuant to this chapter that: May only be owned by its participants and sponsors, unless the Commissioner has authorized the issuance of nonvoting securities to other persons: Maintains at least $250,000.00 in capital and surplus subject to Code Section 33-41-8, which shall at all times be available to pay any expenses of or claims against it; May only insure or reinsure the risks of its participants, or the controlled unaffiliated business thereof, in accordance with separate participant contracts; Funds its liabilities to each participant through one or more protected cells and keeps the protected cell assets and protected cell liabilities of each protected cell segregated from the general account and from the protected cell assets and protected cell liabilities of other protected cells; and Establishes administrative and accounting procedures necessary to allocate, identify, separate, and segregate the protected cell assets, protected cell liabilities, insurance and reinsurance obligations, assets, credits, liabilities, losses, tax benefits and refunds attributable to the protected cells. "Unincorporated protected cell" means a protected cell that is not itself a legal entity separate from the sponsored captive insurance company of which it is a part. (Code 1981, § 33-41-101 , enacted by Ga. L. 2019, p. 533, § 2-14/HB 99; Ga. L. 2020, p. 493, § 33/SB 429.) The 2020 amendment, effective July 29, 2020, part of an Act to revise, modernize, and correct the Code, revised punctuation at the end of subparagraph (9)(D).