State RegulationsGA specificDifficulty 2/5
The Insurance Commissioner suspects that an insurer headquartered in Atlanta is keeping records that do not accurately reflect its obligations to Georgia policyholders. Which statement best describes the Commissioner's investigative authority?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-6-6, the Insurance Commissioner is empowered to make investigations and examinations that the Commissioner considers reasonably necessary, and Georgia insurers and producers must cooperate with those inquiries. A suspicion of inaccurate records is enough to trigger the authority — no consumer complaint and no court order is a prerequisite — and the resulting record review can support further regulatory action.
Why the other options are wrong
- B) A written consumer complaint is not a prerequisite; the Commissioner may act on the Commissioner's own judgment.
- C) No court order is needed — the investigative power belongs to the Commissioner directly.
- D) The authority extends beyond filed annual statements to examinations of the insurer's actual records.
Memory hook
The Commissioner investigates on the Commissioner's own judgment — no complaint, no court order.