State RegulationsGA specificDifficulty 2/5
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?
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Answer & full 3-part explanation (select an option above, or peek)
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.