State RegulationsGA specificDifficulty 1/5
An entity not licensed in Georgia markets and sells insurance policies directly to Georgia residents. Under O.C.G.A. § 33-1-2, is this transacting insurance business in Georgia?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-1-2, transacting insurance includes soliciting and effecting coverage, and nothing in the definition requires a physical Georgia office. An entity that sells policies to Georgia residents is transacting insurance business subject to Georgia's licensing and regulatory framework.
Why the other options are wrong
- A) The absence of an in-state office does not remove the activity from the statutory definition of transacting insurance business.
- C) Georgia licenses nonresident insurers and producers; transacting is measured by the activity, not by the entity's domicile.
- D) The activity qualifies as transacting when it occurs; a resident complaint is not a trigger for the definition to apply.
Memory hook
Selling to Georgians = transacting in Georgia, office or not.