Licensing for Insurance Producers and Brokers

Originally published September 2, 2005

The Georgia General Assembly amended the insurance code to create new disclosure and licensing obligations for insurance producers. Under Georgia law, the term "producer" is defined broadly enough to cover persons acting as traditional brokers. The new section of the Code, O.C.G.A. § 33-23-46 ("Section 46"), became effective on July 1, 2005 and appears to have been added in response to recent allegations by New York Attorney General Eliot Spitzer regarding insurance brokers and contingent commissions.

Primarily, this new section creates obligations on the part of insurance producers and insurance counselors to disclose the form and the source of their compensation in certain circumstances. The language of the statute, however, also affects the Georgia insurance licensing requirements for insurance producers. The effect of this statute on insurance producers is outlined below: