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.