State RegulationsGA specificDifficulty 2/5
A Georgia applicant wants a producer license primarily to insure the applicant's own business and family. Which statement reflects Georgia's approach to controlled business?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under the Georgia Insurance Code as administered by the Insurance Commissioner, Georgia does not impose a fixed percentage limit on controlled business, but a license will not be granted or continued where the primary purpose is to insure the licensee's own interests. Occasional self-placement by an otherwise active producer is acceptable; building a license around writing only one's own account is not.
Why the other options are wrong
- B) A license may not be granted for the primary purpose of writing only the producer's own interests, even though Georgia sets no percentage cap.
- C) Self-placement is not banned outright; the restriction targets licenses whose primary purpose is controlled business.
- D) Passing the examination is not enough; the Commissioner will refuse a license sought primarily for the applicant's own insurance.
Memory hook
No percentage cap, but no license just for insuring yourself.