State RegulationsGA specificDifficulty 2/5
A Georgia resident regularly reviews clients' existing life and health coverage and, for a fee, recommends whether to keep, replace, or add policies; the clients decide what to purchase. Under Georgia law, this individual:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Charging a fee for insurance advice is the defining trigger of Georgia's counselor licensing requirement, which the Insurance Commissioner administers. Because the review and recommendation work is compensated advice rather than a sale, a producer license alone does not cover it; the individual needs a counselor's license in addition to any producer license held. The clients' final purchase decisions do not change the advisory nature of the paid service.
Why the other options are wrong
- A) The absence of a sale does not avoid licensing; the fee charged for advice itself triggers the counselor requirement.
- B) A producer license alone authorizes selling, not compensated advisory services.
- C) A certificate of authority is the authorization an insurer needs to transact business in Georgia, not an individual's credential.
Memory hook
Paid to advise? Counselor license, even if the client buys.