GEORGIA INSURANCE LAWS CONTRACTS
AND COVERAGE MODULE EXAM
QUESTIONS SOLUTIONS CLAIMS
HANDLING REVIEW 2026
◉ 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.
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
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.
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
AND COVERAGE MODULE EXAM
QUESTIONS SOLUTIONS CLAIMS
HANDLING REVIEW 2026
◉ 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.
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
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.
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
