Georgia State Insurance Laws, Rules, and Regulations

What is controlled business in insurance?

• Writing primarily for oneself, family, or employers, rather than genuinely soliciting public risks.

• Offering insurance policies to the general public without restrictions.

• Engaging in insurance practices that prioritize profit over client needs.

• Providing insurance coverage exclusively for high-risk individuals.

What are the rules regarding additional fees in insurance?

• Charging fees beyond policy premiums is prohibited unless explicitly authorized by statute or insurer contract.

• Insurers can charge any fees they deem necessary without restrictions.

• Additional fees can be charged if the policyholder agrees to them verbally.

• Fees can be added at any time during the policy term without prior notice.

What is a nonresident license and how is it obtained?

• A nonresident license is granted via reciprocity to producers in good standing in their home state, without requiring retaking exams.

• A nonresident license is issued only after passing a state-specific exam.

• A nonresident license is available to anyone regardless of their home state status.

• A nonresident license is a temporary permit that must be renewed every year.

What is required for license maintenance for producers?

• Producers must complete required continuing education, file renewal applications, and pay fees on time.

• Producers must attend annual conferences and submit a report to the state.

• Producers are required to take a written exam every five years.

• Producers must have a mentor and complete a shadowing program.

What is required for a counselor license?

• A special license, surety bond, and compliance with contract-approval rules.

• A bachelor's degree in psychology only.

• Completion of a 6-month internship.

• A recommendation from a licensed therapist.

What is the role of Georgia's Insurance Department and Commissioner?

• To oversee insurers and licensees, promulgate rules, issue or revoke certificates of authority, approve policy forms and rates, and guide the market to protect consumers and promote solvency.

• To provide financial assistance to insurance companies in Georgia.

• To regulate the prices of all goods and services in Georgia.

• To manage the state's healthcare system and ensure access to medical services.

What are the responsibilities of insurance agents?

• Agents must accurately present coverage and collect premiums.

• Agents can prioritize their own interests over clients' needs.

• Agents are not required to remit premiums promptly.

• Agents can avoid presenting all coverage options to clients.

What are the rules for sharing commissions in insurance?

• Commission sharing is allowed between any producers regardless of licensing.

• Commission sharing is only allowed between properly licensed producers of the same lines.

• Commission sharing is prohibited in all circumstances.

• Commission sharing is allowed only for producers in different states.

What is rebating in insurance?

• Offering policy inducements not in the contract, such as cash back or gift cards, unless explicitly allowed by law.

• Providing discounts on premiums for early payment.

• Offering free insurance for a limited time to attract new customers.

• Giving policyholders additional coverage without extra cost.

What is the purpose of the Commissioner's examination of records?

• To audit insurers, agencies, and other entities to verify financial solvency, proper reserve levels, and compliance with Georgia law.

• To assess the marketing strategies of insurance companies.

• To evaluate customer satisfaction with insurance services.

• To investigate fraudulent claims made by policyholders.