As used in this article, the term:(1) 'Limited purpose subsidiary' means a subsidiary life, accident, and sickness reinsurer that is organized under this article and is wholly owned by an organizing domestic reinsurer.(2) 'Organizing domestic reinsurer' means a domestic life, accident, and sickness reinsurer that organizes a limited purpose subsidiary under this article.(3) 'Reinsurer' means an insurer that: (A) Is principally engaged in the business of reinsurance;(B) Does not conduct a significant amount of direct insurance as a percentage of the insurer's net premiums; and(C) Is not engaged on an ongoing basis in the business of soliciting direct insurance.(4) 'Risk' means a risk that is associated with an insurance policy or annuity that is assumed by an organizing domestic reinsurer and for which the organizing domestic reinsurer is required to hold statutory reserves for the policy or annuity.Added by 2011 Ga. Laws 111,§ 1, eff. 7/1/2011.
Georgia Legal Code