§ 33-13-13 - Recovery by receiver of distributions paid in event of liquidation, rehabilitation, or conservation of insurer - Georgia Statutes

O.C.G.A. 33-13-13 (2010)
33-13-13. Recovery by receiver of distributions paid in event of liquidation, rehabilitation, or conservation of insurer

(a) If an order for the liquidation, rehabilitation, or conservation of an insurer authorized to do business in this state is entered under Chapter 37 of this title, the receiver appointed under the order shall have a right to recover on behalf of the insurer the amount of distributions other than stock dividends paid by the insurer on its capital stock at any time during the five years preceding the petition for liquidation, rehabilitation, or conservation, subject to the limitations of subsections (b) through (d) of this Code section.

(b) No dividend shall be recoverable if that insurer shows that when paid the distribution was lawful and reasonable and that the insurer did not know and could not reasonably have known that the distribution might adversely affect the ability of the insurer to fulfill the obligations to claimants under its insurance contracts.

(c) (1) Any person who was an affiliate of the insurer at the time the distributions were paid shall be liable up to the amount of distributions he received.

(2) Any person who was an affiliate of the insurer at the time the distributions were declared shall be liable up to the amount of distributions he would have received if they had been paid immediately.

(3) If under paragraphs (1) and (2) of this subsection two persons are liable with respect to the same distributions, they shall be jointly and severally liable.

(d) The maximum amount recoverable under this Code section shall be:

(1) The amount needed in excess of all other available assets to pay all claims under the receivership; and

(2) Reduced by any amount already paid to receivers under similar laws of other states.

(e) If any person liable under subsection (b) of this Code section is insolvent, all its affiliates that controlled it at the time the dividend was paid shall be jointly and severally liable for any resulting deficiency in the amount recovered from the insolvent affiliate.

(f) In addition to any authority of the Commissioner contained elsewhere under this title or under the laws of this state, whenever the Commissioner shall deem it expedient, he shall also have the authority to examine either in person or by some examiner duly authorized by him the affairs, transactions, accounts, records, documents, and assets of any insurer, person, parent, subsidiary, or affiliate within an insurance holding company system and any other facts relative to the business methods, management, and affairs of the insurers, persons, parents, subsidiaries, or affiliates to determine whether any dividends or other distributions made by an insurer to any person, parent, subsidiary, or affiliate within the holding company system are recoverable under subsection (b) of this Code section; and the Commissioner may subpoena any portion or all of the documents, books, accounts, records, or other information of insurers, persons, parents, subsidiaries, or affiliates as he may deem necessary to reach his determination. The subpoenas may be obtained by the Commissioner in accordance with Chapter 2 of this title and the expenses of any examination made pursuant to this Code section shall be paid by the persons, affiliates, subsidiaries, or insurers in the same manner as provided for insurers in Chapter 2 of this title.