State RegulationsGA specificDifficulty 1/5
Under Georgia law, the term 'transacting insurance' includes which of the following?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-1-2, transacting insurance is defined broadly to include solicitation, negotiation, and effectuation of insurance — the full range of activities that bring a contract into being. The definition is deliberately wider than the moment of sale, which is why unlicensed solicitation is regulated even if no policy is ever issued.
Why the other options are wrong
- A) Premium collection alone is far too narrow; the definition reaches pre-sale conduct.
- C) Illustrations are only one possible activity and not the definitional core.
- D) Claims handling is not the focus of the transacting-insurance definition.
Memory hook
Solicit, negotiate, effect — any one of the three is 'transacting.'