The insurance industry receives significant amounts of money through premium payments and earnings on investments.

These investments are beneficial to insurance companies, and, when the investments are made in municipal bonds, vital to the communities that offer them.

The funds help communities build new schools and roads and expand utilities, transportation and health care.

The Insurance Research Council's latest report shows that in 2005, property-casualty insurers held investments of more than $320 billion in municipal bonds nationwide.

More than $29.8 billion was invested in six Southern states at the end of 2005, including more than $9 billion in Georgia and $5.7 billion in South Carolina, according to the Georgia Insurance Information Service and the South Carolina Insurance News Service.

In Georgia, utility-related municipal bonds were the most common type, accounting for 29 percent of the municipal bonds and 22 percent of the total combined value of all municipal bonds held by insurers.

Both transportation and education municipal bonds also were commonly held by insurers, representing 13 percent and 11 percent, of the total combined value of all municipal bonds held by insurers in Georgia.

In South Carolina, education-related municipal bonds were the most common type held by insurers, representing 29 percent of the bonds held and 30 percent of the total combined value of all South Carolina municipal bonds held by insurers.

Insurers also held a significant number of these bonds involving utilities and transportation, accounting for 13 percent and 12 percent respectively of the bond's total value.

Insurers also pay millions of dollars in the states where they do business through premium taxes, professional license fees and a variety of other local and state taxation.

"Most people think about investments in terms of real estate projects, office buildings and other large undertakings, but investments in local communities helps insurers come full circle by investing in the communities and their residents that support them," said Allison Dean Love, the executive director of the South Carolina Insurance News Service.

DAVID COLMANS IS THE EXECUTIVE DIRECTOR OF THE GEORGIA INSURANCE INFORMATION SERVICE, A TRADE ASSOCIATION FOR PROPERTY AND CASUALTY INSURERS IN THE STATE. LEARN MORE ABOUT THE INDUSTRY AND SEE CONSUMER TIPS AT WWW.GIIS.ORG.