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Check Georgia’s insolvency-pool treatment against the policy class

Georgia’s insolvency-pool law names financial guaranty and surety obligations as separate exclusions. If the offered policy is classified in either category, the pool exclusion may matter if its insurer becomes insolvent; the contract-frustration label alone does not establish that classification. 1

What Is Contract Frustration?

Contract frustration may fit your business when an international contract is exposed to political disruption or government action. If your main risk is a customer who cannot pay, compare trade-credit coverage instead. Read the national Contract frustration guide.

What to Watch for in Georgia

  • The financial-guaranty label has a consequence only if it fits the policy

    Georgia excludes mortgage guaranty, financial guaranty, and other insurance protecting investment risks from the pool’s definition of a covered property-and-casualty policy. Ask the broker and insurer to state the policy’s regulatory line and explain why the actual trigger fits it; this statute does not decide whether a contract-frustration form belongs in that class. 1

  • A performance bond is a separate classification question

    Georgia separately excludes fidelity or surety bonds and other bonding obligations. If the proposal promises to answer for a counterparty’s performance, ask whether the insurer is offering an indemnity policy or a bond, who the obligee is, and what event triggers payment. The bond exclusion does not classify every contract-frustration policy as surety. 1

  • A later insurer transfer can change the pool analysis

    Georgia’s 2024 Insurance Business Transfer Act added different pool treatment for a policy transferred from a member insurer and one transferred from a nonmember insurer under a qualifying statutory process. If the risk-bearing insurer changes, ask which entity issued the policy and whether a court-approved statutory transfer or another transaction moved the obligations. 2

Who Regulates Insurance in Georgia

Georgia Office of Commissioner of Insurance and Safety Fire

Georgia’s elected Insurance and Safety Fire Commissioner licenses and regulates insurance companies and insurance professionals, investigates insurance fraud, and oversees consumer complaint services. The Office’s state license lookup covers agents, agencies, and companies. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 4% of total premium when Georgia is the home state Georgia charges 4% on the total premium written and received by a surplus-lines broker when Georgia is the insured’s home state. Current fee treatment is not described here because the Department’s latest fee bulletin could not be retrieved as readable text; ask your broker for the policy-declaration and tax breakdown. This record does not state a Georgia-specific guaranty-fund conclusion. 6

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Georgia

  1. What insurance line and form will the insurer file this risk under, and what policy wording supports that classification?
  2. Does the proposed contract protect your loss after a defined frustrating event, or does it guarantee another party’s performance or payment?
  3. Which legal entity will owe the policy obligations at binding, and has any statutory insurance-business transfer changed the responsible insurer?

Contract Frustration in Georgia: FAQ

Does calling a policy “contract frustration” tell me whether Georgia’s pool applies? 1

No. Georgia’s statute distinguishes financial-guaranty insurance, investment-risk protection, and surety obligations, but it does not classify a policy by this product label. Have the insurer identify the actual filed line and form. 1

Could an insurer transfer affect pool treatment? 2

Yes, for a qualifying statutory transfer Georgia added separate rules for policies transferred from member and nonmember insurers. Ask whether the transfer was under that process and which insurer became directly responsible. 2

Contract Frustration in Other States

Other Coverage in Georgia

Sources

  1. Official Code of Georgia Annotated, Title 33, Chapters 23–66 (2025 Supplement). Georgia General Assembly; O.C.G.A. §33-36-3(11)(F)–(G), policy definition and listed exclusions; history identifies HB 1049, effective May 6, 2024. Accessed 2026-09-28.
  2. House Bill 1049/AP (Insurance Business Transfer Act). Office of the Governor of Georgia; Section 1, O.C.G.A. §33-36-3(4)(O)–(P); Section 5 effective upon gubernatorial approval or becoming law; Code transfer rules. Accessed 2026-09-28.
  3. Office of Commissioner of Insurance and Safety Fire. Georgia Office of Commissioner of Insurance and Safety Fire; Official homepage; regulator role, elected commissioner, complaint and license lookup links. Accessed 2026-09-28.
  4. Agents, Agencies and Licensing. Georgia Office of Commissioner of Insurance and Safety Fire; Official state license lookup for agents, agencies, and companies. Accessed 2026-09-28.
  5. Report Complaints & Fraud. Georgia Office of Commissioner of Insurance and Safety Fire; Consumer Services complaint instructions and official complaint portal. Accessed 2026-09-28.
  6. Non-Admitted Insurance: Premium Tax FAQs. Georgia Office of Commissioner of Insurance and Safety Fire; 4% applies to total broker-written and received premium when GA is home state. Accessed 2026-09-28.
  7. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  8. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  9. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  10. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  11. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  12. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  13. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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