State RegulationsGA specificDifficulty 3/5
A producer reviewing Georgia's unfair claims settlement practices article asks where its penalties are located. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
O.C.G.A. § 33-6-31 is only the purpose clause of the unfair claims practices article; it announces the article's objective and contains no penalties. Enforcement lives elsewhere - the unfair trade practices framework in O.C.G.A. § 33-6-4 and the cease and desist machinery in O.C.G.A. § 33-6-9. The citation-hygiene point matters for anyone tracing where regulatory power actually sits.
Why the other options are wrong
- A) The purpose clause carries no penalty provisions; penalties come from the enforcement provisions of the Insurance Code, not § 33-6-31.
- C) The fifty percent of the loss figure belongs to the bad-faith penalty in O.C.G.A. § 33-4-6, not to the purpose clause of the claims article.
- D) The unfair trade practice penalties in O.C.G.A. § 33-6-4 remain in force; the purpose clause repealed nothing.
Memory hook
31 sets the stage - it carries no stick.