State RegulationsGA specificDifficulty 2/5
An insurer has been writing policies in Georgia without a certificate of authority. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Georgia's insurer authorization provisions (O.C.G.A. § 33-3-2 through § 33-3-5), transacting insurance without a certificate of authority is unlawful, and the Insurance Commissioner has enforcement authority over insurers doing unauthorized business in Georgia. Admission in another state provides no safe harbor for writing policies here without authorization.
Why the other options are wrong
- A) Home-state admission does not exempt an insurer from Georgia's authorization requirement.
- C) Filing an annual financial statement has no curative effect on unauthorized status.
- D) Enforcement is the Commissioner's responsibility; it does not depend on policyholders raising the issue.
Memory hook
Admitted at home means nothing until Georgia says so.