Georgia § 33-41-2 - Definitions.

§ 33-41-2. Definitions.

Terms not defined in this chapter shall have the same meaning ascribed to them in this title. As used in this chapter, unless the context otherwise requires, the term: "Affiliate" means any person in the same corporate system as a parent, an industrial insured, or a member organization by virtue of common ownership, control, operation, or management. "Agency captive insurance company" means: Any domestic insurance company granted a certificate of authority pursuant to this chapter that is owned or controlled by an insurance agency, brokerage, managing general agent, or reinsurance intermediary, or an affiliate thereof, or under common ownership or control with such agency, brokerage, managing general agent, or reinsurance intermediary, and that only reinsures the risk of insurance or annuity contracts placed by or through such agency, brokerage, managing general agent, or reinsurance intermediary; or Any domestic insurance company granted a certificate of authority pursuant to this chapter that is owned or controlled by a marketer, producer, administrator, issuer, or provider of service contracts or warranties and that only reinsures the contractual liability arising out of such service contracts or warranties sold through such marketer, producer, administrator, issuer, or provider. "Association" means any membership organization whose members consist of a group of individuals, corporations, partnerships, or other entities or associations who engage in similar or related professional, trade, or business activities and who collectively own, control, or hold with power to vote all of the outstanding voting interests of an association captive insurance company or of a person that is the sole shareholder of an association captive insurance company. "Association captive insurance company"' means any domestic insurance company granted a certificate of authority pursuant to this chapter to insure or reinsure the similar or related risks of members and affiliates of members of its association. "Captive insurance company" means any pure captive insurance company, association captive insurance company, agency captive insurance company, industrial insured captive insurance company, sponsored captive insurance company, or risk retention group captive insurance company. "Controlled unaffiliated business" means: Any person: That is not in the corporate system of a parent and its affiliated companies; That has an existing contractual relationship with a parent or one of its affiliated companies; and Whose risks are managed by a captive insurance company in accordance with this chapter and approved by the Commissioner; or A reinsurance arrangement with other captive insurance companies that is approved by the Commissioner. "Dormant captive insurance company" means a captive insurance company that: Has ceased transacting the business of insurance, including the issuance of insurance policies; and Has no remaining liabilities associated with insurance business transactions, or insurance policies issued prior to the filing of its application for a certificate of dormancy pursuant to this chapter. "Formation documents" means articles of incorporation, if the captive insurance company or the prospective captive insurance company is a stock insurer, stock corporation, or a mutual insurer, or articles of organization, if the captive insurance company or the prospective captive insurance company is a limited liability company, and any amendments or restatements of the same. For purposes of this term, an incorporated protected cell, as defined in Article 2 of this chapter, shall be included in the definition of "captive insurance company." "Industrial insured" means an insured: Who procures the insurance of any risk or risks through the use of the services of a full-time employee who acts as an insurance manager, risk manager, or insurance buyer or through the services of a person licensed as a property and casualty agent, broker, or counselor in such person's state of domicile; Whose aggregate annual premiums for insurance on all risks total at least $25,000.00; and Who either: Has at least 25 full-time employees; Has gross assets in excess of $3 million; or Has annual gross revenues in excess of $5 million. "Industrial insured captive insurance company" means any domestic insurance company granted a certificate of authority pursuant to this chapter to insure or reinsure the risks of industrial insureds and their affiliates and which has as its shareholders or members only industrial insureds that are insured or reinsured by the industrial insured captive insurance company or which has as its sole shareholder or sole member an entity whose only owners are industrial insureds that are insured or reinsured by the industrial insured captive insurance company. "Mutual insurer" means an incorporated insurer without capital stock or shares that is owned and governed by its policyholders. "Parent" means an entity which directly or indirectly owns, controls, or holds with power to vote more than 50 percent of the total outstanding voting: Securities of a pure captive insurance company organized as a stock corporation; or Membership interests of a pure captive insurance company organized as a limited liability company. "Pure captive insurance company" means any domestic insurance company granted a certificate of authority under this chapter to insure or reinsure the risks of its parent and affiliates of its parent, and controlled unaffiliated business. "Risk retention group captive insurance company" is any domestic insurance company granted a certificate of authority pursuant to this chapter and determined by the Commissioner to be established and maintained as a "risk retention group" as defined under the federal Liability Risk Retention Act of 1986, as amended. "Stock insurer" means an incorporated insurer with capital divided into shares and owned by its shareholders. "Transact," as used in this chapter, shall not include the organizational activities associated with the preliminary formation, incorporation, petitioning for a certificate of authority, and initial capitalization of a captive insurance company. (Code 1981, § 33-41-2 , enacted by Ga. L. 1988, p. 966, § 2; Ga. L. 2015, p. 377, § 1-1/HB 552; Ga. L. 2016, p. 825, § 1/SB 347; Ga. L. 2017, p. 682, § 1/SB 173; Ga. L. 2017, p. 774, § 33/HB 323; Ga. L. 2019, p. 533, § 2-2/HB 99.) The 2019 amendment, effective July 1, 2019, inserted "sponsored captive insurance company," near the end of paragraph (5); deleted "pure" preceding "captive" in the middle of division (6)(A)(iii); deleted "pooling" following "reinsurance" near the beginning of subparagraph (6)(B); added paragraph (7); redesignated former paragraphs (7) through (15) as present paragraphs (8) through (16), respectively; in paragraph (8), inserted ", stock corporation," near the middle of the first sentence, and added the second sentence; and, in paragraph (14), deleted "which has been" preceding "granted a certificate" near the middle of the first sentence, and deleted the former second sentence, which read: "A risk retention group may be chartered and licensed pursuant to this chapter or pursuant to Chapter 40 of this title."