State RegulationsGA specificDifficulty 1/5
Before an insurance company — whether domestic, foreign, or alien — may transact an insurance business in Georgia, what must it obtain from the Insurance Commissioner?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. §§ 33-3-2 through 5, no insurer may transact an insurance business in Georgia without a certificate of authority issued by the Insurance Commissioner. The certificate specifies the kinds of insurance the insurer is authorized to write; selling coverage outside that authorization, or without the certificate, constitutes unauthorized transacting of insurance subject to enforcement.
Why the other options are wrong
- A) A trade-association waiver has no legal force; only the certificate of authority from the Insurance Commissioner under O.C.G.A. §§ 33-3-2 through 5 authorizes transacting insurance.
- B) Out-of-state and foreign insurers are not rechartered by the General Assembly; all insurers transacting business in Georgia need the Commissioner's certificate of authority.
- D) Insurance regulation is state-based in Georgia; there is no federal commerce license, and O.C.G.A. §§ 33-3-2 through 5 require the state certificate of authority.
Memory hook
No certificate, no coverage — the Commissioner's certificate is the door key.