A Georgia applicant plans to write insurance almost exclusively on the applicant's own business and family members. What does Georgia law say about this controlled business?

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.