State RegulationsGA specificDifficulty 2/5
The Georgia Insurance Department schedules an examination of a licensed insurer's claims files in Atlanta. The insurer offers only summaries prepared by its outside accounting firm. What must the insurer do?
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 C is correct
Under O.C.G.A. § 33-2-10, insurers' accounts and records are subject to examination by the Insurance Commissioner, and the insurer must open its books to the Department's examiners. An insurer cannot substitute its own summaries or condition the examination on board or accountant approval; obstructing an examination exposes the insurer to enforcement action by the Department.
Why the other options are wrong
- A) Department examiners examine the original records; pre-digested summaries do not satisfy the insurer's duty.
- B) Examinations proceed on the Commissioner's own authority; home-office approval is irrelevant.
- D) The examination is conducted by the Commissioner's examiners, not by a firm the insurer selects.
Memory hook
Georgia opens the books to the Commissioner — originals, not summaries.