State RegulationsGA specificDifficulty 2/5
Which statement about controlled business in Georgia is accurate?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Georgia imposes no fixed percentage limit on controlled business, but under the licensing provisions of the Georgia Insurance Code (O.C.G.A. § 33-23-1 through § 33-23-46), a license will not be granted or continued where its primary purpose is writing the licensee's own interests or those of close associates. The test is the purpose of the license, not a quota.
Why the other options are wrong
- A) There is no initial-period rule permitting only controlled business, and no percentage cap of any kind exists.
- B) Georgia deliberately has no fixed percentage cap; control is judged by the primary purpose of the license, not by premium volume ratios.
- C) Controlled business remains fully subject to Georgia's licensing and unfair trade practices requirements.
Memory hook
No percentage cap — but no license for self-serving purposes.