State RegulationsGA specificDifficulty 3/5
A Georgia adjuster asserts that a late-paid claim can be penalized directly under O.C.G.A. § 33-6-31. What is wrong with that assertion?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Georgia law, § 33-6-31 states only the legislative purpose of the unfair claims settlement practices article; it contains no enforcement mechanism or penalty of its own. The operative prohibitions and standards live in § 33-6-33 and § 33-6-34, penalties for unlawful trade practices in § 33-6-4, and bad-faith exposure in § 33-6's companion § 33-4-6. Citation hygiene matters: anchoring a penalty to the purpose clause is a classic drafting error.
Why the other options are wrong
- A) The purpose clause is not line-specific; the error is that it contains no penalties at all, whatever the line of coverage.
- B) The 50 percent figure belongs to the bad-faith statute, not to § 33-6-31, which imposes nothing.
- D) No cease and desist precondition exists for § 33-6-31; again, it simply has no penalties to precondition.
Memory hook
33-6-31 is a preamble, not a penalty — find the teeth elsewhere.