State RegulationsGA specificDifficulty 1/5
Which statement correctly describes how Georgia treats controlled business?
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Answer & full 3-part explanation (select an option above, or peek)
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.