Georgia's insurance law is Title 33 of the Official Code of Georgia Annotated (O.C.G.A.), together with the Commissioner's rules in Ga. Comp. R. & Regs. Chapter 120-2. This page covers the Georgia rules that apply to every line: the regulator, licensing, appointments, unfair practices, fraud and the guaranty funds. The shared national guide covers general contract and agency concepts.

About the exam

Georgia's exams are delivered by Pearson VUE. The passing score is 70% (Rule 120-2-3-.09).

• Retakes: wait 14 days after a first or second failure, and 60 days after a third. There is no limit on attempts.
• After passing: file the license application within 12 months of passing, or retake the exam.
• Prelicensing: courses are valid for one year. You must pass the exam within a year of finishing the course, or take it again.
• Application deficiencies: must be fixed within 60 days, or the application is closed and the fee is forfeited.
• Citizenship: new applicants file a notarized Citizenship Affidavit with secure ID.

The regulator

• The Commissioner of Insurance is elected statewide to a four-year term in the November general election (O.C.G.A. 21-2-9). Most states appoint this official, so the exam likes to test it.
• The office is formally the Office of Commissioner of Insurance and Safety Fire, because it also handles fire safety.
• The Commissioner heads the Department of Insurance (33-2-1).
• Rules: proposed rules must be approved as to legality by the Attorney General and kept on public file for at least 10 days before taking effect (33-2-9).
• Orders take effect only when written and signed (33-2-10).
• Examinations:
  • each domestic insurer at least every five years, and any insurer whenever expedient (33-2-11)
  • any licensee's records when in the public interest (33-2-12)
• Hearings:
  • held within 30 days of a demand (33-2-17), with at least 10 days' notice (33-2-19)
  • a proposed order takes effect without a hearing unless one is requested within 10 days (33-2-24(b))
  • appeals to court within 30 days of the order (33-2-26)
• Insurer types:
  • Domestic means formed in Georgia. Foreign means another U.S. state. Alien means another country (33-3-1).
  • Insurers need a certificate of authority (33-3-2).
  • Stock insurers are owned by shareholders. Mutual insurers have no capital stock and are owned by their policyholders (33-14-2).
  • Georgia groups insurance into six classes: life, accident and sickness; property, marine and transportation; casualty; surety; title; and HMO (33-3-5).

Producer licensing

• Who needs a license: anyone who sells, solicits or negotiates insurance needs a license for that line of authority (33-23-4).
  • Solicit means trying to sell, or urging someone to apply for a particular kind of insurance from a particular company.
  • Negotiate means conferring with or advising a buyer on a contract's terms (33-23-1).
  • Willfully acting without a license is a misdemeanor.
• Applicants (33-23-5):
  • at least 18
  • a Georgia resident (living here at least six months a year) or with a principal place of business in Georgia
  • of good character, with an approved prelicensing course and a passed exam
  • Georgia's rule requires at least 8 hours of prelicensing instruction per major line (Rule 120-2-3-.08)
  • fingerprints for new resident applicants
• Exemptions:
  • CPCU holders are exempt from the P&C exam (Rule 120-2-3-.09).
  • A producer moving to Georgia who applies within 90 days needs no prelicensing or exam for lines already held.
• Licenses can't be transferred (33-23-24).
• Agencies: every business entity that sells must be licensed as an agency. Each office needs at least one licensed agent who works there (33-23-3). Someone whose license was revoked can't own 10% or more of an agency.
• Subagents and limited subagents can't bind an insurer. Their business is written in the name of the employing agent, who is responsible for them (33-23-28).
• Counselors advise on insurance for a fee:
  • five years of experience required
  • a $5,000 bond
  • a counselor paid by the client takes no other compensation on the same transaction
• A producer who isn't a counselor may not charge the customer for placing insurance (33-23-46).
• Adjusters:
  • Independent adjusters represent insurers. Public adjusters represent only the insured.
  • An agent may adjust claims for its own insurers without an adjuster license (33-23-29).
• Temporary licenses:
  • Six months, extendable in three-month periods, never beyond 15 months.
  • Issued after an agent's death, disability or military service to keep the business going, without writing new accounts. Also issued at an insurer's request to train a new agent under supervision (33-23-13, Rule 120-2-3-.40).
  • Available only for Life, A&S, Property, Casualty and Personal Lines.
• Nonresidents: licensed reciprocally (33-23-16).
• Variable products: a variable license requires the life class, an 8-hour variable course, and FINRA registration.

Keeping the license

• Term: licenses are biennial and expire on the last day of the birth month (33-23-18).
  • A late renewal can be filed, with a late fee, within 15 days after that.
  • Reinstatement with penalties is possible within one year. After that, the person reapplies and repeats prelicensing.
  • Reinstating six months or more after expiration requires new fingerprints.
• Continuing education (Rule 120-2-3-.15), each biennium:

• Carryover is limited to 50% of the requirement, and a course can't be repeated in the same cycle.
• Flood: property agents selling NFIP policies take a one-time 3-hour flood course.
• LTC: 8 hours initially, then 4 hours every 24 months.
• Annuities: a one-time 4-hour course.
• Nonresidents meet their home-state CE.
• An agent licensed 10 consecutive years who only collects renewal commissions may hold a nonactive license, exempt from CE.
• Inactive license: an agent with no appointment on file is placed on inactive status. An inactive agent can't sell but must still complete CE (33-23-19).
• Report:
  • a business address change within 30 days (33-23-25)
  • a criminal prosecution within 30 days of arrest (33-23-21(17))
  • a felony conviction or another professional license revocation within 60 days (33-23-21(19))
• Records: transaction records are kept five years after the transaction or the contract term, whichever is longer (33-23-34).
• Moving: a producer who moves out of Georgia files the change of address and new home-state certification within 30 days (33-23-16(c)).

Appointments (certificates of authority)

• Each insurer obtains a certificate of authority (appointment) for every agent who represents it (33-23-26).
  • For an already-licensed agent, it is effective as soon as it is submitted. For a new licensee, it takes effect when the license is granted.
  • It is submitted within 15 days of the agency contract (Rule 120-2-3-.21).
  • Insurers renew appointments annually.
• Terminations: for any reason, the insurer notifies the Commissioner within 30 days of the effective date.
• An inactive or suspended agent keeps commissions earned on business written before (33-23-20).
• Commissions may be paid or shared only with licensed persons (33-23-4, 33-23-38).
• Policies on Georgia risks may be placed only with admitted insurers, except through surplus lines.

Fiduciary duties and premiums

• Premiums are held in a fiduciary capacity and may not be commingled with personal funds. A separate account for each insurer isn't required if each one's money can be identified from the books (33-23-35).
• Willfully mishandling premium is a misdemeanor, or a felony above $1,000.
• Returning premium (33-24-44(c)):
  • the agent returns unearned premium within 10 working days
  • when the insurer cancels, the refund is pro rata
  • late refunds carry a 25% penalty plus 18% interest, capped at 50% of the refund
• Agents may charge a service charge on premium balances unpaid 30 days: up to 15 cents per $10 a month, with a $1 minimum (33-6-5(6)(C)).
• Agents may not sign policies in blank for use outside their office (33-23-30).

Unfair trade practices (O.C.G.A. 33-6-4, 33-6-5)

• Misrepresentation, false advertising, defamation, and false financial statements.
• Twisting: misrepresentation to induce a lapse or replacement.
• Boycott, coercion and intimidation.
• Tie-ins: requiring that insurance be placed with a particular agent or insurer as a condition of a sale or loan. A lender may still reject an insurer for solvency or similar sound reasons.
• Falsely claiming a connection to Medicare or the government.
• Unfair practices in marketing to service members.
• Rebating: any inducement not specified in the policy. Accepting a rebate is also prohibited (33-9-36(c)). Allowed:
  • promotional items worth up to $100 per customer per year, not tied to a sale
  • business meals and entertainment
  • food at seminars where no applications are taken
• Unfair discrimination:
  • based on race, color or national origin
  • against blind applicants
  • against victims of family violence or sexual assault. Policies must include a notice about this protection.
  • against living organ donors
  • against mentally or physically impaired applicants for P&C
  • based on a home's age or location without objective loss experience
• Penalties:
  • with a cease and desist order: up to $1,000 per violation, or $5,000 if the person knew or should have known. License suspension or revocation requires that knowledge (33-6-8).
  • violating the order: up to $10,000 per act (33-6-9)
  • general penalties: $2,000 per act, or $5,000 if knowing. Probation for up to one year (33-2-24).
• Market withdrawal: an insurer leaving a line notifies the Commissioner one year ahead and gives insureds 90 days' general notice (33-6-5(12)).

Claims, fraud and privacy

• Unfair claims practices (33-6-34) count when done flagrantly or as a general business practice. Examples:
  • not acknowledging communications
  • failing to provide claim forms within 15 days
  • not investigating
  • lowball offers that force lawsuits
• There is no private right of action under the unfair claims article (33-6-37).
• Bad faith: refusing in bad faith to pay a covered loss within 60 days of a demand costs the insurer up to 50% of the loss or $5,000, whichever is greater, plus attorney fees (33-4-6).
• Liability limits: a claimant may get the policy limits within 60 days of a sworn written request (33-3-28).
• Insurance fraud (33-1-9) is a felony: 2 to 10 years in prison and up to $10,000. Examples:
  • false application statements
  • converting premium
  • fake certificates or ID cards
  • acting for an unauthorized insurer
• Licensees must report suspected fraud to the Commissioner. Good-faith reporters are immune (33-1-16).
• Privacy (33-39):
  • access requests answered within 30 business days
  • adverse decisions explained within 21 business days of a request made within 90 business days
  • pretext interviews are limited

P&C contract rules

• Binders: oral or written, valid until the policy is issued or 90 days, whichever is shorter (33-24-33).
• Certificates of insurance must be on Commissioner-approved forms and can't change coverage (33-24-19.1).
• Policy forms: filed 90 days before use, and deemed approved if not acted on (33-24-9).
• Rates may not be excessive, inadequate or unfairly discriminatory (33-9-4).
• Credit-based insurance scores (33-24-91 to 33-24-95):
  • credit can't be the only reason to deny, cancel or nonrenew
  • scores can't use income, gender, race, address, zip code, religion, marital status or nationality
  • adverse-action notices give up to 4 reasons
  • scores are refreshed at least every 36 months
• Cancellation by the insurer (33-24-44):
  • at least 30 days' notice
  • 10 days for nonpayment, or for any reason during the first 60 days
• Commercial policies (33-24-47):
  • 45 days' notice to cancel or nonrenew, or for a premium increase over 15%
  • if notice is missed, the insured may buy 30 more days at the same terms
  • workers' comp cancellation or nonrenewal needs 75 days
• Surplus lines (33-5):
  • placed through a licensed surplus lines broker (with a $50,000 bond) after unsuccessful efforts with admitted insurers
  • exempt commercial purchasers don't need the search
  • tax is 4%, paid quarterly
  • surplus lines can't be used for personal auto or homes unless admitted coverage is unavailable

Guaranty funds

• Georgia Insurers Insolvency Pool (P&C, 33-36):

• Life and Health Insurance Guaranty Association (33-38-7):

• Using the association to sell is prohibited. The penalty is up to $1,000 per act (33-38-21).

Exam traps

• The Commissioner is elected, for four years.
• CE is 24 hours (3 of ethics), or 20 hours after 20 years of licensure.
• Report a felony conviction within 60 days and an arrest within 30 days.
• Binders last at most 90 days. Commercial notice is 45 days, and workers' comp notice is 75 days.
• The P&C pool cap is $300,000, and claims under $50 aren't paid.