State RegulationsGA specificDifficulty 2/5
Which statement best describes the certificate of authority in Georgia?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-3-13 through § 33-3-30, the Insurance Commissioner issues a certificate of authority to an insurer as the authorization required before it may transact insurance business in Georgia. Without it, the insurer is unauthorized, and producers who place business with such a carrier risk regulatory consequences and coverage problems for their customers.
Why the other options are wrong
- B) Agent licensing is a separate requirement for individuals; the certificate of authority concerns insurers, not office displays.
- C) There is no requirement that a certificate of authority be attached to individual policies; it authorizes the insurer to transact business.
- D) An annual financial report is a filing obligation of authorized insurers; it is not the mechanism by which authority to transact is granted.
Memory hook
The insurer's permission slip is the certificate of authority.