A carrier solicits and sells accident and sickness policies to residents of Savannah, Georgia, but has never been granted a certificate of authority. Under Georgia law, what is the status of that carrier?

Why D is correct

Under O.C.G.A. § 33-3-2 through § 33-3-5, an insurer transacting insurance in Georgia without a certificate of authority from the Insurance Commissioner is an unauthorized insurer and may not lawfully transact insurance business in this state. Selling policies does not cure the lack of authority, and the carrier remains subject to Department enforcement action.

Why the other options are wrong

• A) Actual delivery of policies does not confer authority; authorization depends on holding a certificate of authority, not on completed sales.
• B) Surplus lines eligibility is a separate framework and does not make an insurer authorized to transact directly in Georgia.
• C) Stock status describes an insurer's ownership structure, not whether it holds authority to transact insurance in Georgia.

Memory hook

No certificate in Savannah? Unauthorized — and un-transactable.

Why B is correct

Under the Georgia Insurance Code, an insurer may not transact the business of insurance in this state without a certificate of authority issued by the Insurance Commissioner. By soliciting and delivering a policy without ever being admitted, the insurer has acted as an unauthorized insurer and faces sanctions and regulatory action by the Office of Commissioner of Insurance and Safety Fire; the status follows licensure, not whether paperwork changed hands.

Why the other options are wrong

• A) Issuing a policy does not confer authorized status; authorization comes from the Commissioner's certificate of authority, which this insurer never obtained.
• C) Alien status turns on where the insurer was organized, not on whether it was admitted in Georgia.
• D) An insurer is domestic only if organized under Georgia law; delivery of the policy in Georgia does not change its domicile.

Memory hook

Selling without a certificate of authority means unauthorized, full stop.