State RegulationsGA specificDifficulty 3/5
During a market-conduct examination, a Georgia insurer declines to produce requested policy files, claiming they are proprietary trade secrets. What is the correct analysis under Georgia law?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-2-10 through § 33-2-13, the Insurance Commissioner has statutory authority to examine the records and affairs of insurers doing business in Georgia, and insurers must make their records available for examination. Trade-secret objections do not override the examination power; the regime exists precisely so the Department can verify market conduct and solvency without needing a consumer complaint or a court order as a trigger.
Why the other options are wrong
- A) Examinations reach well beyond filed forms into the insurer's books, records, and market practices.
- B) The examination power is administrative and self-executing; no court subpoena is required to examine a domestic insurer's records.
- D) A policyholder complaint is not a prerequisite; the Commissioner may examine on the Department's own initiative.
Memory hook
The Commissioner's eyes reach the files — trade secrets don't block an examination.