State RegulationsGA specificDifficulty 1/5
Which statement correctly describes participation in the Georgia Life and Health Insurance Guaranty Association under Georgia law?
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. §§ 33-38-1 through 10, the Georgia Life and Health Insurance Guaranty Association is composed of every insurer licensed to write life or health insurance in this state — membership is a mandatory condition of holding that authority. The association exists to protect Georgia policyholders when a member insurer becomes impaired or insolvent, funded by assessments on its member insurers.
Why the other options are wrong
- A) Membership is neither voluntary nor limited to stock insurers; O.C.G.A. §§ 33-38-1 through 10 compel all licensed life and health insurers, mutual or stock, to join.
- B) Georgia-domiciled insurers are equally bound; the membership condition in O.C.G.A. §§ 33-38-1 through 10 turns on the license to write life or health business in Georgia, not the home office location.
- C) The association protects policyholders OF insolvent insurers; membership must already exist before insolvency, since O.C.G.A. §§ 33-38-1 through 10 tie it to licensure.
Memory hook
Write life or health in Georgia, join the guaranty club — no opt-outs.