A Georgia producer is appointed by a direct-response personal auto insurer that markets through mail and online ads. Which statement best describes Georgia's licensing treatment of this arrangement?

Why this is the answer

Georgia does not exempt direct-response insurers from licensing rules. Under O.C.G.A. § 33-23-4, no person may sell, solicit, or negotiate insurance in Georgia without a license for that line, and any individual who does so must be licensed as an agent, so the employees who quote and sell the insurer's auto policies by phone or online must hold Georgia agent licenses. The insurer itself does not need an agent's license, and advertising alone without intent to solicit is exempt. Mail, telephone, and online sales are permitted, and the insurer must obtain a certificate of authority for each agent who represents it (§ 33-23-26).