Georgia State Insurance Laws Exam
2025 Questions and Answers
Chief Executive Officer of the Office of Insurance - ANSWER-Insurance and
Safety Fire Commissioner (Commissioner)
What is the Ins. Commissioner's term of office? - ANSWER-4 years
Chief Deputy Commissioner - ANSWER-Appointed by commissioner and
assumes duties if the commissioner is disabled or absent
Powers of Commissioner - ANSWER-Regulation
Examination of records
Investigation
Hearing and judicial review
Issuing penalties
Regulatory Authority - ANSWER-The Commissioner is given the authority to
enforce the laws related to insurance created by the state legislature. Likewise, the
commissioner is granted the authority to produce rules related to administration
and enforcement of such laws.
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,The legality of any rule is determined by the State Attorney General.
Examination - ANSWER-When the Commissioner feels it is necessary, he may
examine insurance companies' authorized to do business in Georgia related to
transactions, accounts, records and assets and other facts relative to its business
methods, management and dealings with policyowners.
How often are companies subject to Examination - ANSWER-Every 5 years
Who is examined every 5 years - ANSWER-Domestic Insurance Companies and
rating organizations.
Who is SUBJECT to examination - ANSWER-insurance agent, subagent, broker,
counselor, adjuster or other licensed person. Any person with a contract granting a
dominant right of control of an insurance company. Those persons controlling the
management of, or involved in the creation or promotion of an insurance co. or an
insurance co. holding company
Investigation - ANSWER-To gather information related to the activities of
insurance companies, agents, and others in the conduct of insurance transactions.
The Commissioner may hold hearings to discover possible violations. They are
empowered to subpoena witnesses and ask questions of those commanded to
those hearings.
Hearing and Judicial Review - ANSWER-The Commissioner may hold a hearing
based upon his belief that there is a possible violation of the Insurance Code or in
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,response to a written demand made by any person who feels they have been
wronged under Georgia insurance law.
After a person has complained and the Commissioner feels that grounds for the
hearing exist...the hearing will be held within 30 days of the demand. The
Commissioner will serve notice of hearings by registered mail. The Commissioner
may preside or assign a designated representative as a hearing officer
Penalties - ANSWER-The Commissioner has the right to impose any penalty or
remedy provided by the law against any person who has been investigated and
found responsible for a violation without a hearing. If the wrongdoer wishes a
hearing they must make such request within 10 days of receipt of the order.
If found in violation of the law, what are the actions taken by the Commissioner's
office - ANSWER-a) to cease and desist (stop) from engaging in that act or
practice.
b) to be placed on probation for a period of time not exceed 1 year for each and
every violation.
c) payment of fine of not more than $1,000 for each violation, unless the violator
did it knowingly and in that case the penalty shall not be more than $5,000 for each
violation.
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, d) a person or organization who fails to pay the penalty after it becomes final is
subject to a judgment ordered by the appropriate court upon request of the
Commissioner.
If the Commissioner feels a violation warrants criminal prosecution, what happens
- ANSWER-He turns it over to the appropriate authorities
Domestic Insurer - ANSWER-insurance company formed (or chartered) under the
laws
of Georgia.
Foreign Insurer - ANSWER-insurance company formed (or chartered) under the
laws of
another state or government of the United States.
Alien Insurer - ANSWER-insurance company formed (or chartered) under the
laws of
country other than the United States.
Stock Insurance Company - ANSWER-incorporated insurance company with
capital divided into shares and owned by its shareholders. The shareholders may or
may not be policyowners. Stock companies do not typically pay dividends to
policyowners.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
2025 Questions and Answers
Chief Executive Officer of the Office of Insurance - ANSWER-Insurance and
Safety Fire Commissioner (Commissioner)
What is the Ins. Commissioner's term of office? - ANSWER-4 years
Chief Deputy Commissioner - ANSWER-Appointed by commissioner and
assumes duties if the commissioner is disabled or absent
Powers of Commissioner - ANSWER-Regulation
Examination of records
Investigation
Hearing and judicial review
Issuing penalties
Regulatory Authority - ANSWER-The Commissioner is given the authority to
enforce the laws related to insurance created by the state legislature. Likewise, the
commissioner is granted the authority to produce rules related to administration
and enforcement of such laws.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,The legality of any rule is determined by the State Attorney General.
Examination - ANSWER-When the Commissioner feels it is necessary, he may
examine insurance companies' authorized to do business in Georgia related to
transactions, accounts, records and assets and other facts relative to its business
methods, management and dealings with policyowners.
How often are companies subject to Examination - ANSWER-Every 5 years
Who is examined every 5 years - ANSWER-Domestic Insurance Companies and
rating organizations.
Who is SUBJECT to examination - ANSWER-insurance agent, subagent, broker,
counselor, adjuster or other licensed person. Any person with a contract granting a
dominant right of control of an insurance company. Those persons controlling the
management of, or involved in the creation or promotion of an insurance co. or an
insurance co. holding company
Investigation - ANSWER-To gather information related to the activities of
insurance companies, agents, and others in the conduct of insurance transactions.
The Commissioner may hold hearings to discover possible violations. They are
empowered to subpoena witnesses and ask questions of those commanded to
those hearings.
Hearing and Judicial Review - ANSWER-The Commissioner may hold a hearing
based upon his belief that there is a possible violation of the Insurance Code or in
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,response to a written demand made by any person who feels they have been
wronged under Georgia insurance law.
After a person has complained and the Commissioner feels that grounds for the
hearing exist...the hearing will be held within 30 days of the demand. The
Commissioner will serve notice of hearings by registered mail. The Commissioner
may preside or assign a designated representative as a hearing officer
Penalties - ANSWER-The Commissioner has the right to impose any penalty or
remedy provided by the law against any person who has been investigated and
found responsible for a violation without a hearing. If the wrongdoer wishes a
hearing they must make such request within 10 days of receipt of the order.
If found in violation of the law, what are the actions taken by the Commissioner's
office - ANSWER-a) to cease and desist (stop) from engaging in that act or
practice.
b) to be placed on probation for a period of time not exceed 1 year for each and
every violation.
c) payment of fine of not more than $1,000 for each violation, unless the violator
did it knowingly and in that case the penalty shall not be more than $5,000 for each
violation.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, d) a person or organization who fails to pay the penalty after it becomes final is
subject to a judgment ordered by the appropriate court upon request of the
Commissioner.
If the Commissioner feels a violation warrants criminal prosecution, what happens
- ANSWER-He turns it over to the appropriate authorities
Domestic Insurer - ANSWER-insurance company formed (or chartered) under the
laws
of Georgia.
Foreign Insurer - ANSWER-insurance company formed (or chartered) under the
laws of
another state or government of the United States.
Alien Insurer - ANSWER-insurance company formed (or chartered) under the
laws of
country other than the United States.
Stock Insurance Company - ANSWER-incorporated insurance company with
capital divided into shares and owned by its shareholders. The shareholders may or
may not be policyowners. Stock companies do not typically pay dividends to
policyowners.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
