State RegulationsGA specificDifficulty 2/5
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?
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 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.