State RegulationsGA specificDifficulty 1/5
The Georgia Insurance Commissioner enforces the state's insurance laws. Which action falls within the Commissioner's broad powers and duties?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-2-1 et seq., the Insurance Commissioner holds broad powers to administer and enforce the Georgia Insurance Code, including examining the books, records, and accounts of insurers, with the examination-of-records authority detailed in O.C.G.A. § 33-2-10. The Commissioner regulates the market; the office neither sells insurance nor prosecutes crimes. Market conduct examinations are the Commissioner's core supervisory tool.
Why the other options are wrong
- B) Criminal prosecution belongs to prosecutors; the Commissioner's office enforces the Insurance Code through administrative powers such as examinations and cease and desist orders.
- C) The Commissioner regulates insurers but never issues policies; underwriting and issuance are insurer functions.
- D) Federal insurance standards come from federal law; the Commissioner administers Georgia's Insurance Code.
Memory hook
The Commissioner inspects the books - he doesn't sell or prosecute.