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One rule, 2 ways the exam asks it. Same knowledge point, different phrasing — work through all of them, because the exam rarely reuses the wording.

State RegulationsGA specificDifficulty 3/5

Under Georgia law, a producer license will NOT be granted or continued in which situation?

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Under the Georgia Insurance Code, Georgia sets no numerical percentage ceiling on controlled business, but a license will not be granted or continued when its primary purpose is writing the licensee's own interests. Family and employer coverage can be written by a properly licensed producer; the abuse the law targets is obtaining or keeping a license chiefly to insure oneself.

Why the other options are wrong

  • B) Writing a policy on a family member is permissible for a licensed producer; it does not by itself disqualify the license.
  • C) There is no majority-volume test in Georgia — the statute keys on the license's primary purpose, not on a share of annual premium.
  • D) Serving a single employer that owns the agency is a permissible business arrangement, not an automatic ground for refusing or continuing the license.

Memory hook

No percent cap in Georgia — just do not license yourself to insure yourself.

State RegulationsGA specificDifficulty 3/5

A Georgia applicant seeks an insurance license primarily to insure the applicant's own business interests. Under Georgia law:

Select an option to reveal the answer and the full 3-part explanation — free, no signup.

Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Under Georgia's licensing chapter (O.C.G.A. § 33-23-1 through § 33-23-46), Georgia does not impose a numeric percentage cap on controlled business. Instead, the standard is purposive: a license will not be granted or continued when its primary purpose is writing the licensee's own interests, so some controlled business is tolerated while a license built on it is not.

Why the other options are wrong

  • B) No fixed percentage cap exists under Georgia law.
  • C) There is no rule prohibiting controlled business during a first renewal cycle.
  • D) The primary-purpose limitation is a real restriction, so the practice is not unlimited.

Memory hook

No percentage cap — but no license built on yourself.

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