Key Takeaways
- Georgia commercial property insurance uses file and use rate regulation
- Commercial policies must disclose terrorism coverage options under TRIA
- Georgia allows surplus lines placement after diligent effort from admitted market
- Surplus lines tax in Georgia is 4% of premium plus stamping fee
- Business interruption and extra expense coverage follow standard commercial forms
Georgia Commercial Property Insurance
Georgia regulates commercial property insurance with specific requirements for rates, surplus lines, and coverage availability.
Rate Regulation
Under Georgia file and use system for commercial property, insurance rates:
- May be used upon filing
- Subject to OCI review after implementation
- Must not be excessive, inadequate, or unfairly discriminatory
- Can be disapproved if OCI finds violations
Commercial Rate Filing
| Requirement | Details |
|---|---|
| Filing | Required with OCI |
| Approval | Not required before use |
| Review | OCI reviews after implementation |
| Disapproval | OCI can order rate changes |
Exam Tip: Georgia uses file and use for commercial lines but prior approval for personal lines (auto, homeowners).
Terrorism Insurance
TRIA (Terrorism Risk Insurance Act)
- Federal program providing terrorism insurance backstop
- Georgia insurers must offer terrorism coverage
- Policyholder can accept or reject terrorism coverage
- Disclosure of coverage terms required
Required Disclosures
- Coverage limits for terrorism
- Premium for terrorism coverage
- Right to accept or reject
- Exclusions and limitations
Commercial Property Coverage
Georgia commercial property follows standard ISO forms:
Coverage Types
| Coverage | Description |
|---|---|
| Building | Structure and permanently attached items |
| Business Personal Property | Contents, inventory, equipment |
| Business Income | Lost income during restoration |
| Extra Expense | Additional costs to continue operations |
Surplus Lines Insurance
Georgia allows surplus lines insurance for risks not available in the admitted market:
Surplus Lines Requirements
| Requirement | Details |
|---|---|
| Diligent Effort | Must seek coverage from admitted market |
| Export Declaration | Required for each policy |
| Surplus Lines Agent | Must use licensed SL agent |
| Surplus Lines Tax | 4% of premium |
| Stamping Fee | Additional fee per policy |
| Disclosure | Must disclose SL status to insured |
Diligent Effort Requirements
Before placing surplus lines coverage, the agent must:
- Make good faith effort to find admitted market coverage
- Document declinations or unavailability
- Maintain records of diligent effort
- File export declaration with OCI
Approved Non-Admitted Insurers
Georgia maintains a list of approved surplus lines insurers:
- Must meet financial requirements
- Subject to OCI approval
- Listed on approved list
- Updated periodically
Business Interruption Insurance
Georgia commercial policies include business interruption provisions:
Key Provisions
- Coverage for lost income during restoration period
- Waiting period typically 72 hours
- Period of restoration clearly defined
- Extended period of indemnity available
- Civil authority coverage for government-ordered closures
Extra Expense Coverage
- Covers costs to continue operations during restoration
- Separate limit from business interruption
- Examples: temporary location, expedited repairs
Builders Risk
Georgia builders risk insurance:
- Covers buildings under construction
- Available on completed value or reporting form
- Theft coverage may require endorsement
- Transit coverage for materials available
- Soft costs coverage often included
What is the Georgia surplus lines tax rate?
What rate system does Georgia use for commercial property insurance?