State RegulationsGA specificDifficulty 2/5
A Georgia applicant wants a producer license solely to insure her own business, her family, and her company's employees. Which statement reflects Georgia law on controlled business?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Georgia's producer licensing law, the Insurance Commissioner will not grant or continue a license issued primarily to write controlled business — insurance on the licensee's own interests — although Georgia imposes no fixed percentage cap. The test is purpose: incidental controlled business is acceptable, but a license sought mainly for self-insurance will not be granted or continued.
Why the other options are wrong
- A) Georgia imposes no percentage cap on controlled business; the control is purpose-based.
- B) Passing the examination does not bless a license whose primary purpose is writing one's own interests.
- C) Writing some business on one's own interests is permitted; only a primarily self-serving purpose is barred.
Memory hook
No cap in Georgia — but a self-serving license dies on purpose.