Before an insurance company may transact the business of insurance in Georgia, what must it obtain from the Office of Commissioner of Insurance and Safety Fire?

Why A is correct

Under the Georgia Insurance Code, the Insurance Commissioner admits an insurer to transact the business of insurance in this state by issuing a certificate of authority; a company without one is unauthorized and may not lawfully sell insurance in Georgia. The certificate is an insurer-level credential, distinct from the individual authorizations the Commissioner grants to persons.

Why the other options are wrong

• B) A producer license authorizes an individual to sell insurance; it does not admit an insurance company to transact business.
• C) A letter of clearance is a producer-mobility document for licensees relocating to Georgia, not an insurer admission credential.
• D) A surplus lines permit relates to placing coverages with unauthorized insurers in limited circumstances; it is not the general admission required to transact insurance in Georgia.

Memory hook

Companies carry a certificate of authority; people carry licenses.