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State RegulationsGA specificDifficulty 2/5

The Insurance Department receives complaints that a Georgia insurer is systematically misrepresenting policy benefits to policyholders. Under O.C.G.A. § 33-6-6, the Commissioner may:

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Why D is correct

Under O.C.G.A. § 33-6-6, the Commissioner may conduct investigations into alleged unfair trade practices and provide for notice and hearing; violations established at the hearing can support cease-and-desist orders and penalties under O.C.G.A. § 33-6-9. The Insurance Department enforces the unfair trade practices law on its own initiative or upon complaint.

Why the other options are wrong

  • A) The Commissioner's investigative and hearing powers are independent of any prior court finding.
  • B) Self-investigation by the insurer does not displace the Insurance Department's enforcement authority.
  • C) The Guaranty Association protects policyholders against insurer insolvency; it neither investigates trade practices nor imposes penalties.

Memory hook

Complaint in, investigation out — Georgia's Commissioner does not wait for courts.

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