State RegulationsGA specificDifficulty 2/5
The Insurance Commissioner of Georgia has reason to suspect an insurer is violating the Insurance Code. Regarding examination of the insurer's records, which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-2-10, the Commissioner's examination authority reaches an insurer's books, records, and accounts to determine whether it is complying with the Insurance Code, and the insurer must submit to the examination. No prior court order is required; the examination power is an administrative supervisory tool. Refusing access itself exposes the insurer to enforcement action by the Insurance Commissioner.
Why the other options are wrong
- B) The examination power is administrative and does not require a prior court order under O.C.G.A. § 33-2-10.
- C) An independent auditor's review does not gate the Commissioner's access; the statutory examination right is direct.
- D) The examination power extends to the insurer's books, records, and accounts generally, not merely claims files.
Memory hook
Books stay open to the Commissioner - no court order needed.