State RegulationsGA specificDifficulty 2/5
The Insurance Department receives complaints that a Georgia insurer is systematically misrepresenting policy benefits to policyholders. Under O.C.G.A. § 33-6-6, the Commissioner may:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under O.C.G.A. § 33-6-6, the Commissioner may conduct investigations into alleged unfair trade practices and provide for notice and hearing; violations established at the hearing can support cease-and-desist orders and penalties under O.C.G.A. § 33-6-9. The Insurance Department enforces the unfair trade practices law on its own initiative or upon complaint.
Why the other options are wrong
- A) The Commissioner's investigative and hearing powers are independent of any prior court finding.
- B) Self-investigation by the insurer does not displace the Insurance Department's enforcement authority.
- C) The Guaranty Association protects policyholders against insurer insolvency; it neither investigates trade practices nor imposes penalties.
Memory hook
Complaint in, investigation out — Georgia's Commissioner does not wait for courts.