State RegulationsGA specificDifficulty 3/5
A Georgia applicant seeks an insurance license primarily to insure the applicant's own business interests. Under Georgia law:
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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.