State RegulationsGA specificDifficulty 1/5
Under Georgia law, which statement best describes the Insurance Commissioner's authority to examine company records?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. §§ 33-2-10 through 13, the Insurance Commissioner is authorized to examine the books, records, and affairs of insurers transacting business in Georgia to determine whether they comply with the insurance laws and remain solvent. This administrative examination power is a core supervisory tool and does not depend on any prior court action.
Why the other options are wrong
- B) No conviction or court proceeding is a prerequisite; O.C.G.A. §§ 33-2-10 through 13 allow the Commissioner to conduct examinations as part of routine supervision.
- C) The examination authority covers an insurer's books and records generally, including financial and claim records — not merely advertising files.
- D) The examination power under O.C.G.A. §§ 33-2-10 through 13 extends to insurers transacting business in Georgia; being domiciled elsewhere does not shield a company's Georgia business from examination.
Memory hook
The Commissioner's exam doesn't wait for a courtroom — books open on request.