State RegulationsGA specificDifficulty 2/5
An applicant in Georgia wants a producer license primarily to write insurance on his own company's property and his own life. What does Georgia law provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under Georgia licensing law (O.C.G.A. § 33-23-1 et seq.), Georgia imposes no numeric percentage limit on controlled business, but a license will not be granted or continued when the primary purpose of the license is writing the licensee's own interests. Self-interested coverage is a legitimate by-product of licensure, never the principal reason the state will issue or keep a license in force.
Why the other options are wrong
- B) Georgia has no percentage cap on controlled business — the test is the primary purpose of the license, not a share of premium volume.
- C) The controlled-business rule turns on the purpose of licensure, not on whether the producer is a resident or a nonresident.
- D) There is no safe harbor achieved by adding one unrelated policy; the license must not exist primarily for writing the licensee's own interests.
Memory hook
Georgia has no percentage cap — but no license if self-interest is the main purpose.