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GA HB754
Bill
Status
Vetoed
5/8/2018
Primary Sponsor
James Shaw
Click for details
AI Summary
- Authorizes Georgia domestic insurers to divide into two or more resulting domestic insurers pursuant to a plan of division, adding a new Article 6 to Chapter 14 of Title 33 of the Official Code of Georgia Annotated
- Requires Insurance Commissioner approval before any division becomes effective; the Commissioner must deny approval if policyholder or shareholder interests are not adequately protected or the division constitutes a fraudulent transfer
- Establishes detailed requirements for the plan of division, including allocation of property, policies, liabilities, capital, surplus, and reinsurance contracts among resulting insurers, with resulting insurers jointly and severally liable for any unallocated liabilities
- Removes the requirement that the Attorney General approve insurance-related rules and regulations for legality before they become effective, and permits the Commissioner to allow formation of a domestic insurer solely for the purpose of merging or consolidating simultaneously with a division
- Grants shareholders of a dividing insurer appraisal rights to dissent and obtain fair value payment for their shares under Code Section 14-2-1302
Legislative Description
Insurance; division of a domestic insurer into two or more resulting domestic insurers; provisions
Last Action
Veto V10
5/8/2018
Full Bill Text
No bill text available