A Georgia producer in Marietta wants a license primarily so she can write policies on her own business and her family's interests. Under Georgia law, what limitation applies to the controlled business she may write?

Why B is correct

Under O.C.G.A. § 33-23-1 and Georgia's controlled business rule, the state imposes no percentage or volume limit on insurance written on the licensee's own interests. The sole limitation is purposive: a license will not be granted or continued if the primary purpose of obtaining it is to write the licensee's own business. A producer whose license also serves the general public has no numeric ceiling to satisfy.

Why the other options are wrong

• A) Controlled business is not banned in Georgia; it is expressly allowed subject only to the primary-purpose limitation.
• C) Georgia deliberately declined to adopt any percentage or comparative volume test; there is no balancing against public business.
• D) No advance approval of the Insurance Commissioner is required; the restriction operates through the licensing standard itself.

Memory hook

No cap, just purpose: Georgia cares WHY you licensed, not HOW MUCH you write.

Why C is correct

Georgia does not impose a percentage cap on controlled business. Instead, under Georgia insurance law, a license will not be granted or continued if it is sought or held primarily for the purpose of writing the licensee's own interests. Occasional coverage of one's own risks is lawful; building a license around that business is not, as determined by the Insurance Commissioner.

Why the other options are wrong

• A) No fixed percentage cap exists in Georgia; the test is the primary purpose of the license, not a quota of premium volume.
• B) There is no state clearinghouse for controlled business in Georgia; the concept is unknown to the Georgia Insurance Code.
• D) Georgia does not bar coverage of one's own or family interests outright; the restriction targets licenses held primarily for such business.

Memory hook

No percentage cap in Georgia — the question is why the license exists, not how much it writes.

Why C is correct

Under the Georgia Insurance Code, Georgia imposes no fixed percentage limit on controlled business. Instead, the Georgia Insurance Department examines the purpose of the license: a license will not be granted or continued when its primary purpose is to write insurance on the licensee's own interests, so a producer whose book is dominated by controlled business risks denial or nonrenewal of the license.

Why the other options are wrong

• A) Georgia has no percentage cap on controlled business, so no half-of-production threshold exists in Georgia law.
• B) Controlled business may be written under the ordinary resident license; no separate limited license is required for it.
• D) Controlled business is not prohibited during any particular renewal cycle; the statutory concern is the primary purpose of the license.

Memory hook

No magic percent — the purpose of the license is the test for controlled business.

Why D is correct

Georgia, as administered by the Office of Commissioner of Insurance and Safety Fire, imposes no numeric percentage cap on controlled business. Instead, the test is purposive: a license will not be granted or continued where its primary purpose is writing insurance on the licensee's own interests. A producer may lawfully write some controlled business, but a license that exists mainly to insure the licensee's own risks will not be issued or renewed.

Why the other options are wrong

• A) Georgia deliberately uses no fixed percentage cap; the abuse test looks to the primary purpose of the license rather than a production ratio.
• B) There is no rule barring controlled business during the first 2 years of licensure; the limit is the primary-purpose test, not the license's age.
• C) Holding an insurable interest does not remove the restriction — an insurable interest may justify the coverage, but a license whose primary purpose is self-insuring will still be denied or not continued.

Memory hook

Georgia counts no percentage — it watches your purpose, not your ratio.