State RegulationsGA specificDifficulty 1/5
Before an insurer may transact insurance business in Georgia, what must it obtain from the Insurance Commissioner?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Georgia's insurer licensing provisions (O.C.G.A. § 33-3-2 through § 33-3-5), an insurer must be authorized by the Insurance Commissioner — evidenced by a certificate of authority — before transacting insurance business in this state. Insurers operating without that authority are unauthorized and may not lawfully write Georgia business.
Why the other options are wrong
- B) Insurers are chartered under state law; there is no federal insurance charter for this purpose.
- C) A surety bond is not the instrument by which an insurer becomes authorized in Georgia.
- D) A letter of clearance relates to individual licensees relocating between states, not insurer authorization.
Memory hook
No certificate of authority, no Georgia business.