State RegulationsGA specificDifficulty 1/5
Which of the following best describes controlled business in Georgia licensing law?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Georgia licensing law (O.C.G.A. § 33-23-1 et seq.), controlled business is coverage written on the licensee's own life, property, or interests, or those of persons or entities closely tied to the licensee. Georgia sets no numeric percentage limit on such business, but a license will not be granted or continued where writing controlled business is the primary purpose, so the Insurance Commissioner applies the concept mainly at licensure and renewal.
Why the other options are wrong
- A) Counselors are separately licensed professionals who give advice for a fee; controlled business is defined by whose interests are insured, not by who writes it.
- B) A temporary license issued after an agent's death is a distinct licensing mechanism; it has nothing to do with the definition of controlled business.
- D) Coverage written for clients assigned by an insurer is ordinary agency production — controlled business turns on the licensee's own interests being insured.
Memory hook
Controlled business = business you control — your own risks and your own circle.