State RegulationsGA specificDifficulty 3/5
A Georgia producer begins selling policies for an insurer that holds no certificate of authority from the Insurance Commissioner. Under Georgia law, this activity is:
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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 and §§ 33-3-13 through 30, an insurer must hold a certificate of authority before transacting insurance in Georgia, and an insurer without one is UNAUTHORIZED. Selling its policies in Georgia is therefore a violation of the licensing scheme — regardless of the insurer's home charter or where any later claim lands — and exposes the insurer and those aiding it to enforcement by the Insurance Commissioner.
Why the other options are wrong
- A) An out-of-state charter does not excuse the Georgia requirement; O.C.G.A. §§ 33-3-2 through 5 demand a certificate of authority from every insurer transacting business in the state.
- B) The prohibition targets the transacting of insurance in Georgia; a delivery-location workaround is not sanctioned by O.C.G.A. §§ 33-3-13 through 30.
- D) The violation occurs when unauthorized insurance is transacted; O.C.G.A. §§ 33-3-2 through 5 do not wait for a denial to make the conduct unlawful.
Memory hook
Selling for a carrier with no Georgia certificate is selling outside the law.