State RegulationsGA specificDifficulty 1/5
A Georgia producer is reviewing the structure of the unfair claims settlement practices article. Which statement about O.C.G.A. § 33-6-31 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 the purpose clause of Georgia's unfair claims settlement practices article; it declares the article's protective purpose and contains no penalties. Penalties and enforcement for unfair trade practices live in O.C.G.A. § 33-6-4 and the enforcement provisions of the unfair practices article, so citing the purpose clause for a penalty is a citation error.
Why the other options are wrong
- A) O.C.G.A. § 33-6-31 contains no penalty provisions; it is declaratory of purpose only.
- C) The enumerated practices appear in O.C.G.A. § 33-6-34, not in the purpose clause.
- D) Adjuster licensing is outside O.C.G.A. § 33-6-31, which addresses only the article's purpose.
Memory hook
33-6-31 talks the talk (purpose); it never fines anyone — penalties live elsewhere.