State RegulationsGA specificDifficulty 2/5
An applicant for a Georgia insurance license explains on his application that he mainly wants the license so he can insure his own construction firm and its equipment. Under Georgia law, the Insurance Commissioner may:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Georgia insurance law, a license will not be granted when the primary purpose is to write the licensee's own interests. The Commissioner examines the purpose behind the application, and a license sought chiefly to cover the applicant's own business is a controlled business license that may lawfully be denied by the Insurance Commissioner.
Why the other options are wrong
- A) Georgia does address controlled business; while no percentage cap exists, a license held primarily for the licensee's own interests may be denied or not continued.
- C) No special course exists as a cure; the statutory test is the primary purpose of the license.
- D) A temporary license under O.C.G.A. § 33-23-13 is tied to situations such as agent death, disability, or termination, not controlled business denials.
Memory hook
A license is for selling to the public, not to yourself — primary purpose is the Commissioner's test.