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State RegulationsGA specificDifficulty 3/5

A Georgia producer writes policies almost exclusively on his own corporation and close family members. His license will be placed in jeopardy only if:

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Answer & full 3-part explanation (select an option above, or peek)

Why D is correct

Under the Georgia Insurance Code's controlled-business standard, the license is at risk when its primary purpose is writing the licensee's own interests or the interests of his business or family. Because Georgia has no numeric threshold, volume alone does not doom the license; the Commissioner looks to the dominant purpose behind the license. A producer who also serves a genuine public book of business is not in violation simply because some business is self-placed.

Why the other options are wrong

  • A) No statutory percentage exists, so crossing any stated share of production is not the trigger Georgia uses.
  • B) A warning letter is not a statutory precondition; the license standard applies directly.
  • C) Writing on family members is not itself prohibited; the violation turns on the primary purpose of the license, not the existence of family policies.

Memory hook

Jeopardy comes from purpose, not from percentage.

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