Georgia Laws, Rules, and Regulations Pertinent to Life, Accident, and Sickness Insurance

A Georgia insurer's annual report shows capital divided into shares, a board answerable to shareholders, and profits distributed as dividends on those shares. Which form is it?

Answer and explanation
Answer: B. Section 33-14-2(2) defines a stock insurer as an incorporated insurer with capital divided into shares and owned by its shareholders, which is what share capital and shareholder governance describe. A mutual insurer under (1) has no capital stock and is owned by policyholders, while fraternal societies and reciprocals are separate forms.Source: O.C.G.A. § 33-14-2 — 33-14-2(2), Stock insurer

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