Insurance laws of the State of Georgia, 1956

SUPPLEMENT
TO
INSURANCE LAWS

STATE OF GEORGIA 1956



UNI ERSITY OF GEORGIA
JAN 28 '57
LIBRARIES
.1 40
.; f~r Jsted.

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GUARANTEED ARREST BOND CERTIFICATES.

No. 223 (House Bill No. 177).

An Act to provide for qualified insurance, fidelity insurance, or surety companies to become surety to the extent of $200.00 with respect to guaranteed arrest bond certificates of automobile clubs and associations, as defined, and requiring the acceptance of such guaranteed arrest bond certificates in lieu of cash bail or other bonds in the event of violation of motor vehicle laws of this State and ordinances of all municipalities of this State regulating motor vehicles except felonies or driving under influence of intoxicating liquor or drugs and to provide for forfeiture of such guaranteed arrest bond certificates; to repeal conflicting laws; and for other purposes.

Be it enacted by the General Assembly of Georgia:

Section 1. (l) Any domestic or foreign insurance Guaranteed

company, fidelity

insurance company,

or surety company

arrest bond certificate.,

which has qualified to transact such business within this

State may, contract to become surety, in an amount not

to exceed $200.00 each, for any guaranteed arrest ,bond

certificates issued by an automobile club or association,

by filing with the Insurance Commissioner of this State

a certificate thus to become surety.

(2) Such certificate shall be in a form which shall be prescribed by the Insurance Commissioner and shall state the following:

(a) The name and address of the automobile club or clubs or automobile association or associations issuing the guaranteed arrest bond certificates of which the said comp,any undertakes to be surety.

(b) The unqualified obligation of the company undertaking to become surety to pay the fine or forfeiture in an amount not to exceed $200.00 of any person who fails 'to 'make an appearance to answer the charges 'for which said 'guaranteed arrest bond certificate 'is: p'6sied~ ,

.I. ... J.! . . ~~~. !".

How usable.

Section 2. Any guaranteed arrest bond certificate to which an insurance, fidelity insurance or surety company has become surety, as herein provided, shall when posted by the person whose signature appears thereon, be accepted in lieu of cash bail or other bond in an amount not to exceed $200.00, as a bail bond, to guarantee the appearance of such person in any court in this State, including all municipal courts in this State, at such time as may be required by the court, when the person is arrested for violation of any motor vehicle law of this State or any motor vehicle ordinance of any municipality in this State, except for the offense of driving under the influence of intoxicating liquors or drugs, or for any felony. Any such guaranteed arrest bond certificates so posted as bail bond in any court in this State shall be subject to the forfeiture and enforcement provisions with respect to bail bonds in criminal cases as provided by law or as may hereafter be provided by law. Any such guaI:anteed arrest bond certificate posted as a bail bond in any municipal court of this State shall be subject to t,he forfeiture and enforcement provisions of the charter or ordinance of the particular municipality pertaining to bail bonds.
Section S. All laws and parts of laws in conflict with this Act are hereby repealed.
Approved February 27, 1956.

Partial abatemeDt.

INSURANCE COMPANIES-GROSS PREMIUM TAX.

No. 261 (House Bill No. 266).

An Act to provide for the partial abatement of the gross

premium tax levied against insurance companies doing

business
.'

in

Georgia,

.and

for

oth. er

purposes.

Be it enacted by the General Assembly of Georgia:

Section,'l. ,That, whenever any insurance, company doing, b.risfnes!? 'in 'this' State shall make, it appear 'to the

4,

Insurance Commissioner, by evidence satisfactory to him, that one-fourth of its total assets, as of December 31st of any taxable year, exclusive of direct obligations of the United States, consists of or is invested in any or all of the following classes of property, to wit: (1) General obligations bonds of the State of Georgia or of any political subdivision of the State of Georgia; (2) revenue bonds or revenue anticipation certificates of any county, municipality or political subdivision of the State of Georgia; (3) revenue bonds or revenue anticipation certificates of any Authority or public corporation created by or pursuant to the laws of the State of Georgia; (4) real estate situated in and subject to taxation by the State of Georgia or its political subdivisions; (5) tangible personal property located in Gorgia and subject to taxation by the State of Georgia or its political subdivisions; (6) loans secured by liens on real estate situated in the State of Georgia; (7) policy loans on insurance policies issued by any such company on lives of persons resident in Georgia; (8) intangible property having a taxable situs in this State; (9) shares in Georgia corporation in which such insurance companies are authorized to invest under the laws of the State of Georgia, then the gTOSS premium tax levied by the Act known as the General Tax Act, approved March 28, 1935 (Ga. L. 1935, p. 11), as heretofore amended, shall be abated or reduced to one and one-quarter percentum upon the gross premium of any such company subject to taxation by said Act, as amended, and if the amount so invested by any such company shall be as much as three-fourths of its total assets, exclusive of direct obligations of the United States, then said premium tax shall be abated or reduced to one-half of one percentum upon the gross premiums of such company subject to taxation by said Act as amended.
Section 2. This Act shall be effective January 1, 1956, and shall apply to premium taxes due and payable thereafter on premiums collected subsequent to July 1, 1955.
Section 3. All laws and parts of laws in conflict with this Act are hereby repealed.
Approved February 28, 1956.
5

INSURANCE COMPANIES-TAX.
No. 462 (House Bill No. 299).
An Act to provide that any Georgia domiciled insurance company, corporation or association issuing insurance policies on fire, windstorm, lightning and extended coverage, may deduct any retaliatory tax actually paid another State from their Georgia taxes; to repeal conflicting laws; and for other purposes.
Be it enacted by the General Assembly of Georgia:
Section 1. Any insurance company, corporation or association domiciled in the State of Georgia, and issuing insurance policies on fire, lightning, extended coverage and windstorm covering property within this State, may Reduction of deduct any retaliatory tax actually paid to another State retaliatory tax. from their Georgia taxes due for the tax year for which such retaliatory tax was paid and only at the time when such Georgia taxes for that year are paid and upon furnishing proof of payment of such retaliatory tax to the Insurance Commissioner of Georgia.
Section 2. The provisions herein shall apply only to taxes accruing on and after January 1, 1956.
Section 3. All laws and parts of laws in conflict with this Act are hereby repealed.
Approved March 14, 1956.
ACCIDENT, SICKNESS AND HOSPITALIZATION INSURANCE.
No. 344 (Senate Bill No. 14).
An Act to create certain regulations concerning insurance companies which sell accident, sickness or hospitalization insurance; to provide for defining the terms used
6

in this Act; to provide for explanatory words on insurance policy delivery envelopes; to provide for refund of initial premiums upon request within ten (10) days; to provide for outline of benefits applied for; to provide for certain refunds of premiums on optional renewable and cancellable policies; to provide for certain explanatory words on either optional renewable and cancellable or non-cancellable and guaranteed renewable policies; to provide for an incontestability clause in certain policies; to provide for exclusion of companies operating under Sections 99-1001 through 99-1021 inclusive, and Sections 99-1001-A through 99-1031-A inclusive, and certain other exclusions; to provide for filing policies with the Insurance Commissioner; to provide a severability clause; to provide an effective date; to repeal conflicting laws, and for other purposes.
Be it enacted by the General Assembly of Georgia:
Section 1. For the purpose of this Act and except as set forth in Section 10 hereof, the term "accident, sickness or hospitalization insurance" means individual policies and family-group policies which provide insurance against loss resulting from sickness or bodily injury or death by accident, or both. The term "monies paid" as Definitions. used herein shall mean application fees, premiums or anything of monetary value paid to a company or its agent as consideration for the acceptance of an application for insurance or the continuing of a contract of insurance in force issued by an insurance company doing business under this Act. The term "company" as used herein shall include any company writing accident, sickness and hospitalization insurance within the State of Georgia.
Section 2. E-very company authorized to write accident, sickness or hospitalization insurance business in the State of Georgia shall provide a delivery envelope for the delivery of such policies issued to Georgia resi-
Delivery
dents on which envelope shall be printed or stamped envelopes. across face thereof in bold type and red ink: "Important insurance policy-Please read."
7

Refund of payments of on requ'est.
Outline of coverage.
Renewal premiums.

Section 3. Every company authorized to write accident, sickness or hospitalization insurance in the State of Georgia shall be required on such policies issued to residents of Georgia to refund all monies paid if within ten days after the delivery of a sickness, accident or hospitalization policy the insured returns said policy to the company or an authorized representative thereof and requests such refund. Each such policy shall have printed thereon or enclosed therewith a notice stating in substance that such a refund will be made upon request.
Section 4. Every company authorized to write accident, sickness or hospitalization insurance in the State of Georgia shall furnish to any applicant for such insurance residing in the State of Georgia a written outline showing the major coverage of the policy applied for, the major exclusions of the policy applied for, the renewal provisions of the policy applied for, and a reference to the policy as respects further provisions. Such written outline shall be given to the applicant at the time of signing the application for such policy and the forms of such outlines shall be subject to the same requirements for filing and approval as are set forth for the filing and approval of policy forms in Section 12 hereof.
Section 5. Every company authorized to write accident, sickness or hospitalization insurance in the State of Georgia issuing such policies renewable at the option of the company 01' such policies cancellable at the option of the company to residents of the State of Georgia shall not decline to accept timely payments of renewal premiums thereon or exercise their optional right to cancel unless such company shall tender to the premium payor
75 % of the difference between the monies paid and the
claims benefits received in cases where the amount of premiums exceed the amount of claims benefits received. The requirements of this section shall not apply to cancellation of such policies or refusal to accept renewal premiums for such policies when the policyholder reaches the age limit set forth in the policy or in the company's schedule or premium rates on file with the Georgia Insurance Department, such age limit in any event to bQ

8

not less than age 60; nor, in the case of accident and sickness policies only, shall this section apply to cancellation or refusal to accept renewal premiums because of change in occupation of the policyholder to an occupation generally classified by the company as to all applicants as uninsurable.

Section 6. Every company authorized to write acci-

dent, sickness or hospitalization insurance in the State

of Georgia issuing to residents of the State of Georgia

such policies cancellable or renewable at the option of

the company shall print on either the top or the bottom

of the first

page and

on the

filing

back of such

policies

Options to cancel or

in bold face type the following words or words of simi- to renew.

lar import not less favorable to the policyholder, "Can-

cellable at the option of the company", or "Renewable

at the option of the company", as the case may be. If

the policy contains a brief description this provision shall

also be incorporated therein.

Section 7. Every company authorized to write accident, sickness or hospitalization insurance in the State of Georgia shall include in such policies in a provision thereof or in an endorsement thereon or in a rider attached thereto a statement as follows, or a statement of substantially similar wording but which is not less favorable to the policyholder: "Incontestable provision. Incontestable (a) After 2 years from the policy date no misstatements provisions. except fraudulent misstatements made by the applicant in the application for this policy shall be used to void this policy or to deny a claim for loss of time (as defined in the policy) commencing or other loss incurred after the expiration of such 2-year period. (b) No claim for loss of time (as defined in the policy) commencing or other loss incurred after 2 years from the policy date shall be reduced or denied on the grounds that a disease or physical condition not excluded from coverage by name or specific description, effective on the date of loss had existed prior to the effective date of coverage of this policy."

Section 8. Every company authorized to write acci-

9

Noncancellable and guaranteed renewable policies.
Notice of intention to cancel.
Insurance policies not affected by Act.

dent, sickness or hospitalization insurance in the State of Georgia and issuing such policies in the State of Georgia represented to be non-cancellable and guaranteed renewable shall include therein a statement as follows, or a statement of substantially similar wording but which is not less favorable to the policyholder: "This policy may be maintained in force by the insured upon timely payment of premiums to age 60". In all advertising of such policies, the maximum age to which the policy is noncancellable or guaranteed renewable, must be stated.
Section 9. Every company authorized to write accident, sickness or hospitalization insurance in the State of Georgia issuing such policies of accident, sickness or hospitalization insurance in the State of Georgia in which the company reserves the right to refuse to renew or to cancel the policy except for non-payment of premiums when due shall provide, in substance, in such policies, in a provision thereof or in an endorsement thereon or in a rider attached thereto, that the company may not refuse timely renewal of the policy except at the renewal date occurring on or after and nearest to each anniversary date thereof or in the case of lapse and reinstatement at the renewal date occurring on or after and nearest to each anniversary date of the last reinstatement. Except for non-payment of premium, the company shall give to the policyholder not less than 30 days written notice of its intention to cancel or to refuse to accept renewal premium.
Section 10. Nothing in this Act shall apply to or affect (1) any policy of workmen's compensation insurance or any policy of liability insurance with or without supplementary expense coverage therein; or (2) any policy or contract of reinsurance; or (3) any policy, the renewal of which is subject to continuation of employment with a specified employer, or any blanket or group policy of insurance, or any policy issued pursuant to the exercise of conversion privileges provided for in group insurance policies; or .(4) life insurance, endowment or annuity contracts, or contracts supplemental thereto which contain only such provisions relating to accident
10

and sickness insurance as (a) provide additional benefits in case of death or dismemberment or loss of sight by accident, or as (b) operate to safeguard such contracts against lapse, or to to give a special surrender value or special benefit or an annuity in the event that the insured or annuitant shall become totally and permanently disabled, as defined by the contract or supplemental contract; or to any policy of accident, sickness or hospitalization insurance issued prior to the effective date of this Act.

Section 11. The provisions of this Act shall not apply to companies, organizations or associations operating under Section 99-1001 through 99-1021 inclusive and Sections 99-1001-A through 99-1031-A inclusive of the Code of the State of Georgia.

Section 12. No individual or family group policy of

accident, sickness or hospitalization insurance may be

issued for delivery in the State of Georgia until a copy

of such policy has been filed with and approved by the

Insurance Commissioner of Georgia. The Commissioner

shall approve or disapprove the form of such policies not Approval

later

than

30

days

after

such

policy

forms

are

filed,

of policy forms.

otherwise such policies shall be deemed to be approved.

If disapproved, the Commissioner shall notify the com-

pany submitting such policy forms in writing, stating the

reasons for such disapproval. The Commissioner may

withdraw approval of a policy form previously approved,

after formal hearing, notice of which hearing shall be

given to the company in writing at least 20 days in ad-

vance. The action of the Commissioner in approving,

disapproving or withdrawing approval of any such policy

form may be reviewed by certiorari to the Superior Court

of Fulton County, Georgia, as in other cases provided

by law.

Any policy which by its terms otherwise may be approved for issue in the State of Georgia may be brought into conformity with the requirements of this Act by rider or endorsement.

Section 13. Any person, association, company or cor- Violatlou.

11

poration violating any of the provisions of this Act shall be deemed guilty of a misdemeanor.
Section 14. If any part or parts of this Act shall be held to be unconstitutional, such unconstitutionality shall not effect the validity of the remaining parts of this Act. The legislature hereby declares that it would have passed the remaining parts of this Act if it had know that such part or parts thereof would be declared unconstitutional.
Section 15. The provisions of this Act shall become effective July 1, 1956.
Section 16. All laws and parts of laws in conflict with this Act are hereby repealed.
Approved March 7, 1956.

INSURANCE COMPANY INVESTMENTS

No. 193 (Senate Bill No. 56).

An Act to amend an Act entitled "An Act to authorize every insurance company organized and doing business by virtue of the laws of this State to acquire and hold real property for the purpose of renting and leasing same, the investments in such property not to exceed five percent (5 %) of its total assets, and to be in addition to any and all other investments authorized by law, to prescribe the terms and conditions of such investments, and for other purposes," approved March 28, 1947 (Ga. L. 1947, p. 1496), so as to change the terms and conditions relative to investments in real estate; to repeal conflicting laws; and for other purposes.

Be it enacted by the General Assembly of Georgia:

1~' ~i 1947.
amended.

Section 1. An Act entitled "An Act to authorize every
insurance company organized and doing business by virtue of the laws of this State to acquire and hold real

12

property for the purpose of renting and leasing same, the investments in such property not to exceed five percent (5 %) of its total assets, and to be in addition to any and all other investments authorized by law, to prescribe the terms and conditions of such investments, and for other purposes," approved March 28, 1947 (Ga. L. 1947, p. 1496), is hereby amended by striking in its entirety Section 1 and inserting in lieu thereof a new Section 1, to read as follows:

"Section 1. Every insurance company organized and

doing business by virtue of the laws of this State shall

have authority, in addition to all other investments au-

thorized by law, to invest assets in real estate acquired

for the purpose of leasing the same to any person, firm

or

corporation,

or

in

real

estate

already

leased

to

any

Investments in real estate.

person, firm or corporation, under the following terms

and conditions: (1) that the lessee shall at his own cost

erect, or that there has already been erected, thereon

free of liens a building or other improvements costing

an amount at least equal to the value of the said real

estate exclusive of improvements; but if the lease be en-

tered into simultaneously with the purchase of the real

estate, the lessor may agree to erect such improvements

on such real estate; (2) that the said improvements shall

remain on the said property during the period of the

lease, with provision when such improvements are put

upon the said property at the cost of the lessee that at

the termination of the lease the ownership of such im-

provements free of liens shall vest in the owner of the

real estate; (3) that the lessee shall during the terms of Conditions. the lease, or the unexpired period of the lease if the

property be bought subject to the lease, pay to the owner

of the real estate rent in such amount as will enable

the owner to amortize completely the improvements

thereon according to a standard amortization table then

in use at or before the end of the normal termination of

the lease or at the end of 30 years should the lease, or

the unexpired period of the lease, be for a longer period

than 30 years; and (4) that during the term of the lease

the tenant shall pay all taxes and assessments levied on

or against the said real estate, including improvements,

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Sec. 2 amended.
Limitation.

shall keep and maintain the said improvements in good repair and shall provide and maintain for the benefit of the lessor fire insurance on such improvements at least equal to the insurable value of the improvements, or at least equal to the amount invested by the lessor in such real estate, whichever is less. Real estate acquired pursuant to the provisions of this law shall not be treated as an investment hereunder unless and until the improvements herein required shall have been constructed and the lease agreement entered into in accordance with the terms of this law, but if the lessee be a corporation the bonds, debentures, notes or preferred stock of which are eligible as investments under the law of Georgia, the requirements of this law as to the erection of improvements by the lessee, the cost of such improvements and the vesting of ownership of such improvements in the owner of the real estate shall not be applicable."
Section 2. Said Act is further amended by striking in its entirety Section 2 and inserting in lieu thereof a new Section 2, to read as follows:
"Section 2. Real estate acquired under authority of this law shall not be treated as an admitted asset in an amount in excess of the actual investment reduced each year by decrements out of the income from said property sufficient to write off completely, based on standard amortization tables in general use, the improvements at the normal termination of the lease or at the end of 30 years should the term of the lease, or the unexpired period of the lease, be for a longer period than 30 years.
"The total investment of any company under this law shall not exceed five per centum of its assets. No investment shall be made by any company pursuant to this law which will cause such company's investment in all real property owned by it to exceed 25 per centum of its assets or when all real property owned by such company equals or exceeds 25 per centum of its assets."
Section 3. All laws and parts of laws in conflict with this Act are hereby repealed.
Approved February 27, 1956.
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INSURANCE POLICIE8--APPROVAL OF FORMS.
No. 179 (Senate Bill No. 58).
An Act to provide for the filing of all policies of insurance with the Insurance Commissioner; to provide for the approval of all such policies by the Insurance Commissioner; to provide penalties; to repeal all conflicting laws; and for other purposes.
Be it enacted by the General Assembly of Georgia:
Section 1. No policies of insurance of any class whatsoever may be issued for delivery in the State of Georgia until a copy of such policy form has been filed with and approved by the Insurance Commissioner of Georgia. The Commissioner shall approve or disapprove such policy form not later than 30 days after such policy
Filing of
forms are filed, otherwise such policies shall be deemed forms with Insurance
to be approved. If disapproved, the Commissioner shall Commissioner. notify the company submitting such policy forms, in writing, stating the reasons for such disapproval. The Commissioner may withdraw approval of a policy form previously approved, after formal hearing, notice of which hearing shall be given to the company in writing at least 20 days in advance. The action of the Commissioner in approving, disapproving or withdrawing approval of any such policy form may be reviewed by certiorari to the Superior Court of Fulton County, Georgia, as in other cases provided by law.
The Commissioner may, by order, exempt from the requirements of this section for so long as he deems proper, any insurance document or form or type thereof as specified in such order, to which in his discretion this Discretion of section may not practically be applied, or the filing and Commissioner. approval of which are, in his discretion, not desirable or necessary for the protection of the public.
Section 2. Any person, firm or corporation delivering or causing to be delivered in this State any policy of Violations. insurance the form of which has not been approved by
15

the Commissioner of Insurance as required by this Act, shall be deemed guilty of a misdemeanor.
Section 3. All laws and parts of laws in conflict with this Act are hereby repealed.
Section 4. The provisions of this Act shall become effective as of the first day of July 1956.
Approved February 27, 1956.
INSURANCE AGENTS-LICENSING.
No. 324 (Senate Bill No. 96).
An Act to define and regulate the business of representing insurers other than those transacting life, health, accident, hospital, medical service and title insurance and bail bonding by individual sureties; to provide for the licensing of agents for such representation; to define the terms used in the Act; to provide that no license as agent shall be issued except to an individual; to prohibit acting as agent without a license; to provide standards and qualifications to be required for the issuance, renewal or retention of licenses; to provide for the examination of applicants for licenses in certain cases; to provide for the appointment of an advisory board to make recommendations to the Insurance Commissioner; to fix examination and other fees; to authorize the issuance of temporary licenses, and the scope thereof; to authorize the issuance of permits for service representatives; to provide for limited agents' licenses in certain situations; to vest power and authority in the Insurance Commissioner to administer this Act, and to that end to promulgate and enforce rules and regulations; to provide for the refusal, suspension and revocation of licenses and the investigations and hearing procedure relating to such matters; to provide for judicial review of such action by the Insurance Commissioner; to provide for licenses for non-
16

resident agents; to provide that by obtaining a license or by doing business in this State a non-resident agent consents that service upon the Insurance Commissioner shall constitute service upon him, and the manner of proving same; and, (with certain exceptions stated) to require the countersignature of an agent residing in this State upon policies on risks having a situs in this State and on policies negotiated in this State; to prohibit countersigning contracts of insurance in blank; to make certain provisions with reference to the division of commissions; to require the keeping of certain records by agents; to provide penalties for violation of this Act; to repeal all laws 01' parts of laws in conflict with this Act; and for other purposes.
Be it enacted by the General Assembly of Georgia:
Section 1. Whenever used in this Act, certain terms shall be defined as follows:
A. Except where the type of insurance is specifically stated, the word "insurance" shall include all kinds of insurance other than life, health, accident, hospital, medical service and title insurance and bail bonding by individual sureties.
B. "Insurer" shall include any corporation, association, partnership, syndicate or individual engaged in the business of insurance, whether chartered, having the principal office, or residing in the State of Georgia or elsewhere.
C. "Agent" shall mean an individual, appointed or employed by an insurer who solicits insurance or procures applications therefor, or who in any wise, directly or indirectly, makes or causes to be made any contract of insurance for or on account of an insurer, or who as representative of an insurer receives or receipts for money for transmission to the insurer for a contract of insurance, anything in the application or contract to the contrary notwithstanding. The term "agent" as used in this Act shall not include a person acting for or as a collec-
17

Definitions.

tion agency, or an attorney at law admitted to practice in this State, when handling the collection of one or more premiums as a collection matter, nor shall it include a person who shall perform exclusively clerical work, or exclusively work of an office of an insurer or representative thereof not involving solicitation of insurance, signing or countersigning of contracts, or the receipts of prem-: iums. The term "agent" includes subagent, and it includes solicitor.
D. "Agency" shall mean a person as sole proprietor, or a partnership or corporation, representing one or more insurers and being engaged in the business of soliciting or procuring insurance or applications therefor, or countersigning or issuing or delivering contracts of insurance for one or more insurers.
E. "Service representative" shall mean an individual other than an officer, manager, general agent or supervising or managing general agent or special agent of the insurer, employed by an insurer, its general agent, or representative to work with and assist agents in servicing, soliciting, negotiating and effectuating insurance in such insurer or in the insurers represented by such general agent or representative.
F. "Limited surety agent" shall mean an individual appointed by an insurer that is engaged in fidelity insurance business, by power of attorney, to execute and/or countersign only release of attachment bonds and bail bonds in connection with judicial proceedings.
G. "Controlled business of a person" shall mean insurance for himself or his spouse or for any relative by blood or marriage within the second degree of kinship as defined by Code Section 113-903 (5) or for his employer or the firm of which he is a member, or for any officer, director, stockholder or member of his employer or of any firm of which he is a partner, or for any spouse of such officer, director, employer, stockholder or member of his firm, or for his ward or employee, or for any person or in regard to any property under his control or supervision in any fiduciary capacity.
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H. "Commissioner" shall mean the Insurance Commissioner of the State of Georgia, or his successor in office.

I. Whenever used in this Act, words referring to the masculine gender shall be construed to refer likewise to the feminine gender.

Section 2. No license to act as an Agent shall issue except to an individual.

Section 3. Each applicant for a license to act as an agent within this State shall file with the Commissioner his written application upon forms prescribed and furnished by the Commissioner. The application shall be signed and verified by the oath of the applicant. As a part of or in connection with any such application, the applicant shall furnish information concerning his identity, personal history, experience, business record, pur- Applications poses, and other pertinent facts, as the Commissioner for license. may require.

Section 4. The Commissioner may also conduct inquiry or investigation relative to the applicant's trustworthiness, qualifications and competence to be licensed Investigations. or to continue to be licensed as an agent.

Section 5. At midnight of the last day in February

in every year, each license then in effect shall expire

unless renewed. A renewal thereof may be issued not

more than forty-five (45) days before the yearly period

to which it shall apply, or during such period, but shall

have no retroactive effect. Upon the filing of an appli-

cation for renewal accompanied by fee of ten ($10.00)

dollars, a renewal for one yearly period ending at the

end

of

February

shall

be

issued

by

the

Commissioner

Renewal of licenses.

without examination, investigation or inquiry, unless after

procedure conforming to Sections 20 and 22 of this Act

he has previously determined that such renewal should

be refused or the license revoked or suspended, or unless

the application discloses a disqualification of the appli-

cant. If after the filing of an application for renewal

for one year, in proper form and showing sufficient

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Temporary licenses.

cause, thirty days elapse without the sending to the applicant by the Commissioner of a notification of the disposition thereof, the renewal shall be deemed granted on a temporary basis pending consideration of the application for renewal.
Section 6. In the event of the death of an agent, including a temporary agent, or the inability to act as an agent by reason of service in the armed services of the United States, or illness or other disability or termination of appointment by insurer, and if there is no other individual connected with the agency who is licensed as an agent in regard to insurance of the classification transacted by the agent deceased or unable to act, the Commissioner may issue a temporary license as agent in regard to insurance of such classification, to an employee of the agency, to a member of the family of said former agent, or to some associate of his, or to his guardian or receiver or executor or administrator, for the purpose of continuing or winding up the business affairs of the agent or agency. A temporary license shall issue only to an applicant who has filed a sworn application upon forms prescribed and furnished by the Commissioner. Such applicant shall not be required to meet the requirements as to examination, residence and education required for licensing of agents other than temporary agents. If the Commissioner deems the applicant to be qualified for a temporary license, he shall issue same. It shall be effective for six months, renewable from time to time for renewal periods of three months in the discretion of the Commissioner, but in no event shall such renewal, or any other temporary license of renewal with reference to the same matter, extend to a time more than 15 months after the date of the first issuance of a temporary license in such matter. A temporary license shall authorize the negotiation of renewal policies, the receipt and collection of premiums, and such other acts as are necessary to the continuance of the particular insurance business of such agent. Such license shall not authorize the holder thereof to solicit, negotiate or procure new insurance accounts. The fee for a temporary license shall be ten ($10.00) dollars.
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Section 7. From the application for license as an agent, it must affirmatively appear:
A. That the applicant is an individual who has attained the age of 21 years.
B. That the applicant is a citizen of the United states, is a bona fide resident of this State, and will reside and Contents or be present within this State for at least six months of application. every year.
C. That his place of business will be located in this State and he will be actively engaged in the business of insurance, and will maintain a place of business in this State accessible to the public.
D. That the license is not being sought for the purpose of obtaining a rebate or commission upon controlled business, and that the applicant will not in any calendar year effect controlled business that will aggregate as much as twenty-five (25 %) percent of the volume of insurance effected by him in such year, as measured by the comparative amounts of premiums. The anticipated controlled business and the amounts of premiums and commissions and other remuneration thereon shall be itemized upon the application.
E. The Commissioner shall issue an "applicant's certificate" to the applicant upon receipt of a completed application for an agent's license accompanied by a certificate of an insurer authorized to do insurance business in this State, as required by Paragraph "H" of this section. Such "applicant's certificate" shall be valid for a period of three months from the date of issue, and shall authorize the holder thereof to solicit and negotiate contracts of insurance and to receive commissions thereon, but shall not authorize the applicant to sign or countersign policies of insurance. After holding an "applicant's certificate" for at least sixty days, and upon certification by an insurer authorized to do insurance business in this State that, during the life of the certificate, the applicant has been given training in the kind or kinds of insurance
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for which the license is requested, or at the discretion
of the Commissioner, the applicant shall be eligible to
take the written examination; provided, however, he shall satisfy all other requirements of Section 7 and Section 8.
F. The applicant must be recommended by three ,(3) reputable citizens residing in Georgia.
G. The application shall be accompanied by a remittance of ten dollars, which shall be the fee for the issu-
ance of a license. If the Commissioner refuses to issue
a license, the remittance of ten dollars shall not be refunded.
H. The application shall be accompanied by a certificate of an insurer authorized to do insurance business in this State, stating that the insurer desires to appoint the applicant as the insurer's agent for the transaction of insurance of the type of the classification of the license applied for, which insurer shall certify that after inquiring into the facts to the best knowledge, information and belief of such insurer, the applicant for license is a person of good character, is a bona fide resident of the State of Georgia, in good faith intends to remain as a resident of Georgia for at least 12 months from the date of the filing of the application, and is or expects to become bona fide engaged in Georgia in the business of an agent as defined in this Act; that the applicant has such moral and financial standing as to make it probable that he can engage in business as such agent without detriment to the public; that the applicant expects bona fide to solicit and serve the public generally and not to procure the license for the purpose of getting a rebate or commission on controlled business, and that he has such knowledge of insurance of the classification of the license applied for and of the law and practices governing and relating to same as will enable him to carryon the business in a competent manner and without detriment to the public. Every insurer that appoints such person as his agent shall file or have on file with the Commissioner a certificate with reference to such person stating such facts.
22

Section 8. If it appears from the application that the applicant is not qualified to be an agent, or if it appears from other investigation by or under the authority of the Commissioner that the applicant is untrustworthy or not qualified or not competent to be an agent, the Commissioner shall forthwith refuse to allow the applicant to take an examination for license as an agent. Such refusal shall be stated in writing, setting forth the reasons there- Refusal to for, and shall be sent promptly by registered mail ad- license. dressed to the applicant at the address stated by him upon the application. If from the application and the investigation of the applicant conducted by or under the authority of the Commissioner, the applicant is deemed by the Commissioner to be trustworthy and qualified and competent to be an agent if he shall pass the examination therefor, the applicant shall be eligible to take the written examination, and shall be promptly notified in writing by registered mail sent to his address shown on the application that he is allowed to take a written examination prepared under the authority of the Commissioner, as a test of qualifications and ability to be an agent. The Commissioner's decision in regard to Acceptance whether he shall refuse to allow the applicant to take of applicant. the examination, or that the applicant is deemed eligible to take the examination, shall be made within ninety (90) days after the filing of the application.
A refusal by the Commissioner to allow an applicant to take the written examination shall not preclude the applicant from applying as many times as he desires, except that at least six months must intervene between applications.
The fee for the first written examination for license of a certain classification as agent shall be ten ($10.00) E.xamination dollars payable in advance to the Commissioner; for each fee. subsequent written examination in regard to such classification, the fee shall be five ($5.00) dollars. Such fees are payable in advance.
The failure to pass such written examination shall not preclude the applicant from taking subsequent examina- Examinations.
23

Advisory bOBJ'd.
Present license.

tions, provided that at least three months must intervene between his first and second examinations, and at least six months between any subsequent examinations. Once an applicant has been notified that he is allowed to take a written examination, he will not be required to file another application unless so ordered by the Commissioner or unless twenty-four (24) months shall elapse from the filing of his application.
The scope of the written examination shall be limited to the kind or kinds of insurance for which the applicant seeks to be licensed. The passing grade upon an examination shall be 70 percent.
The Commissioner may appoint and from time to time reappoint an advisory board of not less than five nor more than twelve persons to advise with him with respect to the scope, type and conduct of written examinations and the times and places in the State where they shall be held. This advisory board, if appointed, shall consist of individuals experienced in or associated with the business of fire, marine, or casualty insurance or surety bonding. The members of the advisory board shall serve without pay, but upon the authorization of the Commissioner, shall be reimbursed for their reasonable expenses in attending meetings of the advisory board, which shall be held only upon the call of the Commissioner.
An agent to whom a license shall have been issued before the passage of this Act by the General Assembly and whose license shall be in effect shall not be required to take an examination in regard to the subject of insurance within the classification of his license, or within the scope of his limited license, as a prerequisite to renewal of license of such classification, if his application for renewal of license is filed with the Commissioner not later than January 1, 1957.
Section 9. A. The Commissioner may issue a limited automobile agent's license to an individual qualifying therefor by taking and passing an examination limited to such subjects as relate to physical damage insurance on motor vehicles.
24

B. The Commissioner may issue a limited fire agent's license to an individual qualifying therefor by taking and passing an examination limited to such subjects as relate to monthly or weekly premium fire insurance. Provided, however, that the Commissioner may issue such license for a temporary period not exceeding ninety (90) days to an individual otherwise qualified, who is completing the training requirements prescribed in Section Limited 7 hereof, and who will, by the termination of such ninety lIcelLls. (90) day period, take the aforesaid examination. Not more than one such temporary license shall be issued to anyone person.
C. The Commissioner may issue a limited surety agent's license to an individual qualifying therefor by taking and passing an examination limited to such subjects as relate to limited surety agent.
D. The Commissioner may issue a limited casualty agent's license to an individual qualifying therefor by taking and passing an examination covering all kinds of casualty insurance, excluding workmen's compensation insurance and fidelity and surety bonds.
E. The applicant taking and passing an examination limited in scope as hereinabove provided shall be entitled to a license similarly limited in scope, which limitation shall be expressed in said license.
F. Except as otherwise provided, the prOVISIOns of this Act relating to agents generally, including fees and taxes, shall be applicable to individuals applying for or holding a limited agent's license; provided, however, that when the holder of a limited license as hereinabove enumerated shall apply for an agent's license as stated in Section 18, he shall qualify therefor by taking and passing an examination limited in scope to those subjects of insurance not included in his limited license. The fee for such additional examination shall be five ($5.00) dollars.
Section 10. The Commissioner may issue a special license, without examination, to individuals selling trans-
25

portation tickets of a common carrier of persons and properly, who shall act as agents only as to travel ticket policies of disability insurance or baggage insurance on personal effects.
The Commissionel' may prescribe and furnish such special forms calling for such information as he deems proper, in connection with application for or renewal of such special license, providing that fees and taxes shall be the same as for agents generally.

Travel ticket policies.
Non-resident agents.

Section 11. An individual residing in another State, licensed therein as an agent, broker or solicitor, may be licensed by the Commissioner as a non-resident agent under the following circumstances, in the following manner:
A. Upon written application certifying that the applicant will not negotiate or effect a contract of insurance on property or a risk having situs in this State with any insurer not qualified to do business in this State, and upon payment of the required license fee and without requiring a written examination, the Commissioner shall issue a license to an individual to act as non-resident agent who is otherwise qualified therefor under this law, but who is not a resident of this State, if, by the laws of the State of his residence, residents of this State may be licensed in such manner as non-resident agents of this State. The license by the Commissioner shall be of a classification provided herein and for which the applicant has been licensed in the other State.
The required license fee for such license shall be ten ($10.00) dollars, or the sum which is charged as a license fee for non-resident agents by the State of the applicant's residence, whichever is larger.

B. No such license, however, shall be issued to a nonresident who maintains an office as an insurance agent or broker in this State, or who is a member or an employee of a firm or association or is an officer, director, stockholder or employee of a corporation which main-

26

tains an office as an insurance agency or broker in this State. Nor shall such license be issued to any individual who does not hold a solicitor's, agent's or broker's license issued by the State of his residence.
Section 12. A. A risk shall be deemed to have a situs in this State if the insurance is upon or in regard to property having a permanent situs in this State or is movable property which is actually in this State or is principally used or kept in this State.
B. All insurance contracts on risks or property located or having a situs in this State shall bear the countersignature of an agent who resides in the State of Georgia and is licensed pursuant to this Act, except:
(1) Any contract of insurance covering the rolling stock of any railroad or covering any vessel, aircraft or motor vehicle used in interstate or foreign commerce, or covering any liability or other risks incident to the ownership, maintenance or operation thereof.
(2) Any contract of fire insurance upon property of railroad companies and other common carriers.
(3) Any contract of insurance covering any property in transit while in the custody of any common carrier, or any liability or risk incident to such carriage.
(4) Any contract of reinsurance between insurers.
C. A non-resident who is the holder of a non-resident agent's license from the State of Georgia shall not directly or indirectly solicit, negotiate or effect insurance contracts in this State unless accompanied by a countersigning agent licensed pursuant to this Act.
D. Each non-resident agent by obtaining a license in this State or by doing business in this State shall be deemed to have consented that any notice provided in this Act, and any summons, notice or process in connection with any action or proceeding in any State or Fed-
27

Expiration
of !icenaea, effect.

era1 court in this State growing out of or based upon any business or acts done or omitted to be done in this State may be sufficiently served upon him by serving the same upon the Commissioner. Such service shall be made by leaving a copy of the notice, summons or process with a fee of two ($2.00) dollars in the hands of the Commissioner, and such service shall be sufficient service upon the non-resident agent, provided that notice of such service and a copy of the notice, summons or process are forthwith sent by registered mail by the plaintiff or by the Commissioner to the residence of the non-resident agent, addressed to such agent, and the non-resident agent's return receipt and the affidavit of compliance herewith made by plaintiff or plaintiff's attorney or by the Commissioner are appended to the notice, summons or process and filed with said case in the court where it is pending, or filed with the Commissioner if in regard to a proceeding provided under this Act. Venue of such a suit shall be in the county of the residence of a plaintiff in the suit, if plaintiff resides in this State, otherwise in Fulton County. The place of residence of a licensed non-resident agent placed on file by him with the Commissioner shall be deemed to be his place of residence until such agent places on file with the Commissioner a written notice stating another place of residence. The term "process" shall include a petition attached thereto.
Section 13. The expiration of the license of an agent shall not deprive him, or his executors or administrators, of any right that he may have acquired by contract made before such expiration to receive all or a portion of commissions upon contracts of insurance written before such expiration, with reference to the periods of time during which such contracts are in effect, including renewal option periods therein provided.
In case of a sale of an agency upon a "work out" basis, the vendor without maintaining or renewing his license, and his executors and administrators, may participate in the proceeds of premiums on insurance written by the purchaser of the agency, when and as authorized to do so by the contract of sale of the agency, and
28

this participation may be without limitation of time after the vendor ceased to hold an agent's license. An agent whose license has expired may, if authorized by the' insurer, countersign certificates and ~ndorsements nec;' essary to continue coverage to the expiration date, including renewal option periods.
Section 14. An agent shall not sign nor countersign in blank any policy to be issued outside of his office, nor countersign in blank any endorsement therefor, nor shall he give power of attorney to, or otherwise authorize; Problbited anyone to countersign his name to policies unless the aeta. person so authorized is directly employed by the agent and no other person, and has no office files, equipments or address in regard to insurance business, other than in the office of such agent.
Section 15. No agent shall place any insurance or receive any remuneration in regard to any insurance of a classification outside the scope of his license as an agent. Nor shall he share a commission except with an agent licensed pursuant to this Act, or with an agency that has as its proprietor or as a partner in the agency or as an officer or employee of the agency one or more agents licensed in regard to insurance that is within the scope of his agency, or with an agent, agency, solicitor or broker having a residence or situs in another State Same. and a license from such other State for the transaction of insurance therein. Except as provided in the Excess Insurance Agents Law, (Ga. L. 1949, pp. 1201 to 1204), no person shall solicit or be instrumental in placing insurance upon any risk having a situs in this State except with an insurer admitted to do insurance business in this State. Violation of this section shall authorize, among other penalties, the revocation of the violator's license as an agent. Thereupon such violator shall not be issued a new license until at least two years after the time when the revocation became effective.
Section 16. No insurer shall issue, make, write, place Same. or cause to be made, written, placed or issued any contract of insurance, indemnity or suretyship covering
29

risks or property located or having a situs in this State or covering any liability created by or arising under the laws of this State, except through an agent or agents licensed pursuant hereto.

Commissions.

Section 17. Except as provided in Section 12 (B) hereof, all insurance contracts on risks or property 10cated or having a situs in this State must be countersigned by a resident agent duly licensed hereunder and if a non-resident agent, solicitor or broker participates in the effectuation of such contract, such resident agent shall be entitled to the same commission as allowed by the State of residence of the non-resident, but in no event less than twenty-five (25 %) percent of the usual Georgia resident agent's commission, or twenty-five (25 %) percent of the non-resident producer's commission, whichever is the less.

Section 18. Licenses other than limited licenses shall be issued in one or both of the following two classifications:
(1) Fire and allied lines.
(2) Casualty, surety and allied lines.

CI&8silication of licensee.

The license shall state under each classification the kind or kinds of insurance thereof for which the applicant has passed the examination required by Section 8. An agent shall not be required to have any additional license because of having been appointed as agent by more than one insurer doing business in one of these classifications. An insurer appointing a currently licensed agent must furnish notice to the Commissioner on such forms prescribed by the Commissioner, giving notice of the appointment and the current license number issued to the agent.

Alrenta' recorda.

Section 19. Every agent shall keep a record of all contracts of insurance procured, issued, countersigned, endorsed or renewed, together with the exact amount of insurance placed or involved, the name and address of

30

the insured and of the insurer, the subject of the iriSU1'ance and its location, the gross premium paid or to be paid, the number, date and term of the contract, and every automobile insurance policy record must show the class under which it was written. Every agent shall' also keep a record of the names of any other agents, brokers and agencies from whom business is accepted, the perSOIlS, associations, firms, and corporations to whom com,missions or allowances of any kind are promised or paid, and such other information as the Commissioner may require. The period of time that all such records shall be kept shall be three years or the term of the contract of insurance, whichever is longer. The place of keeping such records shall be in the case of a non-resident ,agent, agency or broker be at his or its principal office, and in case the agent or agency has a residence or situs in this State, then at his or its principal office in this State. At all reasonable times when records are required hereby to be kept they shall be open for inspection by' the Commissioner or his representative. If requested by the Commissioner, or his duly authorized representative, the agent shall furnish to him a verified statement in regard to every contract of insurance with reference to which the agent participates in the negotiation or effectuation thereof or in the collection of premiums, showing the risk covered, amount of insurance and premium involved; and such statement shall contain such other information as may be required to aid the Commissioner in the collection of all premium taxes due in this State and the enforcement of the provisions of this Act.

Section 20. A. A license may be refused, or a license

duly

issued

may

be

suspended

or

revoked

or

the

renew~l

GrouDds for refusal aDd

thereof refused

by the

Commissioner if he finds

that the

revocatioD of liceneee.

applicant for, or holder of such license:

(1) Has violated any provision of this Act or of any other law of this State relating to insurance as herein defined, or relating to another type of insurance; or ..

(2) Has intentionally misrepresented or concealed any material fact in the application for such license; or'

31

(3) Has obtained, or attempted to obtain, such license by misrepresentation, concealment or other fraud; or
(4) Has misappropriated, converted or unlawfully withheld money belonging to an insurer or an insured; or
(5) Has materially misrepresented the provisions of an insurance policy; or
,(6) Has committed fraudulent or dishonest practices in the business of insurance; or
(7) Has been convicted by final judgment in any State or Federal court of a felony involving moral turpitude; or
(8) Has knowingly participated in the writing or issuance of substantial over-insurance of any property insurance risk; or
(9) Has failed to pass an examination required pursuant to this Act; or
(10) Has wilfully failed to comply with, or has wilfully violated, any proper order, rule or regulation issued by the Commissioner; or
,(11) Has failed or refused, upon demand, to pay over to an insurer that he represents or has represented, any money coming into his hands and belonging to the insurer; or
(12) Has otherwise shown lack of trustworthiness or lack of competence to act as an agent; or
(13) Is not in good faith carrying on business as an agent but on the contrary is holding his license for the purpose of securing rebates, or commissions on controlled business.
Section 21. The Commissioner may, upon his own moInveetlcaUona. tion, and shall upon a, written complaint signed ,by ~ citi-
32

zen of this State and filed with the Commissioner, inquire into any alleged illegal or improper conduct of any licensed agent, or of any non-resident agent licensed in this State, or into the question of whether a licensed agent or a non-resident agent licensed in this State, is untrustworthy or not competent or not qualified to act as an agent or non-resident agent, as the case may be. No finding or decision adverse to any person in regard to whom such inquiry is conducted shall be made by the Commissioner until after notice and hearing as provided in Section 22 of this Act.

Section 22. Before any license shall be suspended or revoked, or the renewal thereof refused hereunder, the Commissioner shall give notice of his intention so to do to the applicant for, or holder of such license and the insurer whom he represents or who desires that he be licensed and shall set a date not less than twenty (20) days from the date of service of such notice when the applicant or licensee and a duly authorized representa- Hearings. tive of the insurer may appear to be heard and produce evidence. Notice to such agent shall be deemed to have been perfected upon the agent if (and within three days after) such notice is sent by registered mail to the last address of the agent that has been filed by such agent with the Commissioner.

In the conduct of such hearing, the Commissioner or any deputy commissioner specially designated by him for such purpose shall have power to administer oaths, to require the appearance of, and examine any person under oath, and to require the production of books, records, and papers relevant to the inquiry upon his own initiative or upon request of the applicant or licensee. Upon termination of such hearing, findings shall be reduced to writing and, upon approval by the Commissioner, shall be filed in his office and notice of the findings sent by registered mail to the applicant or licensee and the insurer concerned. Any person wilfully failing or refusing to honor a subpoena issued by the Commissioner or any duly appointed deputy commissioner shall be deemed guilty of a misdemeanor.

i., .. ,1'

33

Effect of revocation of license.
Hearing on rejection of application.
Existing licenses.
Rules and regulations.

...Section 23. No licensee whose license has been revoked hereunder shall be entitled to file another application for a license as an agent within two years from the,effective date of such revocation, or if judicial review of such revocations is sought, within two years from the date. of final court order or decree affirming such revocation. Such application when filed may be refused by the Commissioner unless the applicant shows good cause why the revocation of his license shall not be deemed a bal' to the issuance of a new license.
Section 24. Any applicant whose application for a license has been rejected (except for failure to pass a required written examination) shall, upon request therefor in writing within ten days after notice of such rejection, be entitled to a hearing as provided for by Section 22 and the procedure set forth by said section shall apply to the same.
Section 25. Agents holding licenses authorjzing them tQ tra,nsact insurance business in the State of Georgia on tl:J.e effective date of this Act shall continue to be so autp.orized to the same extent as if such agents had been examined pursuant to this Act and duly licensed, but sp,.ch existing licenses shall expire on February 28, 1957, at midnight, unless terminated earlier or renewed as provided herein.
.Section 26. The Commissioner is hereby authorized to establish and promulgate such rules and regulations as,shall be proper for the administration of this Act.

Section 27. Any order of the Commissioner refusing,

suspending, revoking or refusing to renew a license or

Certiorari to peqnit of any kind provided in this Act shall be subject

Commissioner's orders.

to, petition to the judge of the superior court for a writ

of: certiorari as provided by law as in other cases under

Title 19 of the Code of Georgia; the venue being in

th.e county of the residence of the petitioner, if he resides

in, this. State, otherwise in Fulton County.

I. t
Section 28. Every agent holding a license hereunder

34

shall keep the Commissioner advised of his office ad-

dress; his residence address; the name and address of

each insurer that he represents directly or indirectly,

the name and address of each agency of which he is

proprietor, partner, officer, director, or employee, or

which he represents, and every trade name of such

agency,

and

the

names

of

all

partners

and

members

of

Information to be furnished

any firm or association and the corporate name of any Commluioner.

corporation owning or operating such agency. Such in-

formation shall be transmitted in writing by the agent

to the Commissioner.

Section 29. No person who is a service representative shall act as an agent except when accompanied by 01' acting for the benefit of a licensed agent.

No person shall act in this State as a service repre-

sentative unless he shall hold a permit issued by the

Commissioner. The application for such permit shall be

filed in writing by the insurer concerned, and shall show

the name, residence address, name of employer, and the Service

position '01' title of such representative

and type

of work

representatives.

to be performed by him in this State, and such additional

information as the Commissioner may reasonably re-

quire. The annual expiration date of each permit shall

be at midnight of the last day of February.

Section 30. Permits as above provided and licenses for agents shall not be transferable.

Section 31. Nothing in this Act shall prevent the plac-

ing of excess lines of fire or casualty insurance when

authorized and permitted under the provisions of the Excetls Excess Insurance Agents Law approved February 25, Insurance.

1949, published in Georgia Laws, 1949, at pages 1201

and 1204.

.

Section 32. The information filed pursuant to Section 28 shall be kept by the Commissioner for twenty (20) years after filing.
Section 33. Any person who shall violate any of the

35

Violations.

pI:Ovisions of this Act' shall be deemed guilty of a misdemeanor, and shall, upon conviction thereof, be punished as for a misdemeanor, and the Commissioner shall revoke the license of any such person who shall be an agent.

" ". ;

; ..

..... " ...... t :, :

;

, ..

;.

Prohibited acts.

Section 34. Any person who in this State shall act or "purport to act, or hold himself out as an agent (or as an employee of an agent) of an insurer that has not obtained from the Commissioner a certificate of authority then in effect to do business in the State of Georgia, and any person who in this State shall collect or forward any premium or portion thereof for or to such insurer shall be punished as for a misdemeanor, and shall also pay a sum equal to the State, county and municipal taxes and license fees required to be paid by the insurance companies legally doing business in this State (it being the Commissioner's duty to see that violators of this section are prosecuted), and such violator hereof shall also be personally liable, to the same extent as such insurer, upon every contract of insurance made by such insurer with reference to a risk having a situs in this State, if such person participated in the solicitation, negotiation or making of such contract or any endorsement thereon or modification thereof or in the collection or forwarding of any premium (or portion thereof) relating to such contract. This section shall have no reference to a contract of insurance entered into in accordance with the Excess Insurance Agents Law, approved February 25, 1949, Georgia Laws of 1949, pages 1201 to 1204.

Coctracts.

Section 35. Any contract of insurance issued or coun'. tersigned by a person prohibited by this Act from so issu-
irig .or countersigning it shall not be rendered unenforceable by reason of such violation of this Act, but all persons knowingly participating in behalf of the insurer in such v. i,o.lation shall be deemed guilty of a misdemeanor.
(I'
Section 36. If any provision or section of this Act shall be held unconstitutional or otherwise invalid for any rea&9n, such holding shallnot be construed as affecting the

36

validity of any remaining portion of such section or of this Act.
Section 37. Nothing contained in this Act shall be construed as repealing or affecting the provisions of Sections 56-1408 to 56-1425 or 56-9910, relating to the organization of, or the regulation and taxation of incorporated mutual cooperative fire insurance companies; nor shall the provisions of Sections -6 to 10 or 18 of this Act apply to mutual cooperative fire insurance companies, incorporated under the provisions of 56-1408 to 56-1425, or to their agents in the transaction of their business.
Section 38. This Act shall take effect January 1, 1957.
Section 39. All laws and parts of laws in conflict with this Act are hereby repealed.
Approved March 7, 1956.
INSURANCE COMPANIES-PARTICIPATION BY POLICYHOLDERS IN PROFITS.
Code 56-216 Amended.
No. 177 (Senate Bill No. 99).
An Act to amend Section 56-216 of the Code, relating to participation by policy holders in the net profits of insurance companies, as amended, particularly by an Act approved February 8, 1950 (Ga. L. 1950, p. 121), so as to provide that the form of any policy containing the provisions prescribed in said Code section must be approved by the Insurance Commissioner; to repeal conflicting laws; and for other purposes.
Be it enacted by the General Assembly of Georgia:
Section 1. Section 56-216 of the Code, relating to p~rticipation by policyholders in the net profits of in-

Code 56-216 amended.

surance companies, as amended, particularly by an Act approved February 8, 1950 (Ga. L. 1950, p. 121), is hereby amended by adding a new sentence at the end thereof, as follows: "The form of any policy containing such provisions must be submitted to and receive the approval of the Insurance Commissioner of the State of Georgia before issuance and delivery of such policy within this State." so that when so amended, Section 56-216 shall read as follows:

New section.

"56-216. The board of directors, after providing for such reserve as may be required by law, by a majority vote, may give the holders of policies of any company organized under this Chapter on any particular line or class of insurance the right to participate in the net profits of such company to such an extent, in such manner, and upon such terms as the board of directors may agree, the same to be plainly stated on the face of the policy; and unless it be stated on the face of the policy that the policyholder has the right to participate, such policyholder shall not participate in any of the profits of such company. This principle shall apply to all participating policies issued by any company organized under this Chapter, whether such company is a mutual or stock company. The form of any policy containing such provisions must be submitted to and receive the approval of the Insurance Commissioner of the State of Georgia before issuance and delivery of such policy within this State."

Section 2. All laws and parts of laws in conflict with this Act are hereby repealed.

Approved February 27, 1956.

CONTRACTS TO FURNISH AMBULANCE SERVICE IN THE FUTURE.
No. 184 (Senate Bill No. 119).
An Act providing that all contracts agreeing for a con~

sideration to furnish ambulance service in the future to any person or class of persons in this State, shall be construed as health and accident insurance contracts, and be governed by the laws regulating health and accide;nt insurance; to provide that no person, firm, or corporation shall issue such contracts without first complying with the laws regulating health or accident insurance in this State; to provide that the violation of the provisions of this Act shall be a misdemeanor; to repeal conflicting laws; and for other purposes.

Be it enacted by the General Assembly of Georgia as follows:

Section 1. From and after the passage of this Act all

contracts issued for a consideration by any person, firm,

or

corporation

agreeing to

furnish

ambulance

service

in

Construction as health

the

future

to

any

persons,

or

grou p

or

class

of

persons

Or accident insurance.

shall be construed as health or accident insurance con-

tracts and all such contracts shall be governed by the

laws of this State, regulating health or accident insur-

ance; and no person, firm or corporation shall issue such

contracts to any person in this State without first com-

plying with the laws regulating health and accident life

insurance companies.

Section 2. Any person, firm or corporation violating Violations this Act, under conviction, shall be punished as for a of Act. misdemeanor.

Section 3. All laws or parts of laws in conflict with this Act are hereby repealed.

Section 4. This Act shall become effective upon its approval.

Approved February 27, 1956.

39

~IU~ir~rll~I~~li~RI~I~
3 2108 05732 8109 A RESOLUTION.
(Senate Resolution 38).
Creating a committee to study the advisability of enacting a compulsory automobile liability insurance law; and for other purposes.
WHEREAS, a compulsory automobile liability insurance bill was introduced in the Senate at the present Session, and
WHEREAS, it has been determined that in lieu of attempting to enact such a law at this Session, a committee should be created to study the advisability of enacting such a law.
NOW, THEREFORE, BE IT RESOLVED BY THE SENATE that there is hereby created a committee to be composed of three members of the Senate, to be appointed by the President, to make a study relative to the advisability of enacting a compulsory automobile liability insurance law in this State, and matters relating thereto. Said Committee shall be allowed a total of ten days, in the aggregate, for the purpose of said study, and shall make a report on or before January 15, 1957 of its findings and recommendations, to the 1957 Session of the General Assembly of Georgia. The Committee created hereunder shall be abolished effective as of the aforesaid date.
Adopted February 9, 1956.
40
!