What Gets a Georgia Insurance Agent's License Suspended or Revoked

Georgia's Department of Insurance can suspend or revoke an agent's license for specific violations of state insurance law. The grounds fall into two categories: conduct that triggers automatic or mandatory action, and conduct that gives the department discretion to act. Suspension is typically temporary — the license is inactive for a set period or until conditions are met. Revocation is permanent unless the agent later petitions for reinstatement and the department agrees.

The Georgia Insurance Code (O.C.G.A. § 33-37-1 et seq.) and the department's rules spell out which violations lead to which outcome. An agent does not have to be convicted of a crime for the department to act; civil violations of insurance law are enough. The department can also act on violations of federal insurance law or the laws of other states.

Key Takeaways

  • Suspension removes an agent's license for a defined period; revocation is permanent unless the agent later petitions for reinstatement.
  • Fraud, misrepresentation, and theft of client funds are grounds for revocation in nearly all cases.
  • Failure to pay fines, failure to complete required continuing education, and operating without a license can result in suspension or revocation depending on severity and history.
  • The Georgia Department of Insurance investigates complaints and can act without waiting for a criminal conviction.
  • An agent facing suspension or revocation has the right to a hearing before the department, where they can present evidence and testimony.

Fraud, Misrepresentation, and Dishonest Dealing

Fraud and misrepresentation are the most serious grounds for revocation. This includes lying to a customer about the terms, benefits, or cost of a policy; lying to an insurer about a customer's health, driving record, or other underwriting facts; or deliberately concealing material information to close a sale. The department does not need proof of criminal intent — negligent misstatement can also trigger action if it harms the customer.

Dishonest dealing covers a wider range of conduct: steering customers toward policies that benefit the agent's commission rather than the customer's needs, failing to disclose conflicts of interest, or making promises the policy does not cover. An agent who tells a customer that a homeowners policy covers water damage when it does not, or who sells a life policy to an elderly person with no insurable interest and no realistic ability to pay premiums, is engaging in dishonest dealing.

Misappropriation of client funds — holding premium money or claim proceeds without remitting them to the insurer or customer — is treated as fraud and almost always results in revocation. The department can also refer the matter to law enforcement for criminal prosecution.

Failure to Maintain Required Continuing Education

Georgia requires all licensed insurance agents to complete continuing education (CE) hours every two years. The number of hours and the subjects vary by license type. An agent who fails to complete the required hours by the renewal important date is subject to suspension. The license remains inactive until the agent completes the hours and pays any associated late fees.

If an agent allows their license to remain suspended for more than a year without completing CE, the department may move to revoke rather than straightforward suspend. Repeated failures to complete CE — particularly if the agent continues to sell insurance while unlicensed — can also lead to revocation. The department tracks CE completion through the National Insurance Producer Registry (NIPR), so there is little room for error or delay.

Operating Without a License or Selling Unauthorized Products

An agent whose license has expired, been suspended, or been revoked but who continues to sell insurance is committing a violation that can result in revocation of any future license and civil penalties. The department investigates complaints from customers and insurers about unlicensed activity. Even a single sale while unlicensed can trigger action.

Selling insurance products the agent is not licensed to sell — for example, selling health insurance when only licensed for property and casualty — is also grounds for suspension or revocation. An agent must maintain separate licenses for life, health, property and casualty, and variable annuities. Selling outside the scope of the license shows either carelessness or deliberate disregard for the licensing requirement.

Failure to Pay Fines, Restitution, or License Fees

The Georgia Department of Insurance can impose civil penalties (fines) for violations of insurance law. If an agent fails to pay a fine within the time allowed, the department can suspend the license until payment is made. If the agent continues to ignore the fine, the department may revoke the license and refer the debt to the state attorney general's office for collection.

Restitution orders — payments to customers harmed by the agent's conduct — are treated the same way. An agent ordered to repay a customer for a fraudulent sale who fails to do so will face suspension and potentially revocation. The department also suspends licenses for failure to pay renewal fees or other required fees.

Criminal Conviction or Felony Charges

A conviction for any felony, or for a misdemeanor involving dishonesty or breach of trust, is grounds for revocation. The crimes do not have to be insurance-related. A conviction for theft, fraud, embezzlement, or forgery — even if the victim was not an insurance customer — can result in revocation because it shows unfitness to hold a license.

The department does not wait for a final conviction. If an agent is charged with a felony or a crime of dishonesty, the department can suspend the license when ready pending the outcome of the criminal case. If the agent is acquitted or the charges are dropped, the department will typically reinstate the license. If convicted, revocation follows.

Violation of Insurance Laws or Department Orders

The Georgia Insurance Code covers many specific duties: agents must maintain records, respond to department inquiries, disclose their license status to customers, and comply with advertising rules. Violation of any of these duties can result in suspension or revocation depending on the severity and whether it is a first offense.

If the department issues an order — for example, an order to cease a particular sales practice or to submit to an audit — and the agent fails to comply, the department can suspend or revoke the license. Repeated violations of the same rule, or violation of an order the agent has already received, weighs heavily toward revocation rather than suspension.

Frequently Asked Questions

Can an agent keep selling insurance while their license is suspended?

No. A suspended license is inactive. Selling insurance while suspended is a separate violation and can lead to revocation. The agent must stop all insurance sales when ready when notified of suspension.

What happens if an agent is suspended but completes the required action — like finishing continuing education — before the suspension period ends?

The agent can petition the department to lift the suspension early. The department will review the petition and, if satisfied that the condition has been met, will reinstate the license. The agent can then resume selling insurance.

Can a revoked agent ever get their license back?

Yes, but it is difficult. An agent whose license has been revoked can petition for reinstatement after a waiting period (usually one to five years, depending on the reason for revocation). The department will consider whether the agent has addressed the underlying problem, paid any restitution, and shown fitness to hold a license again. Reinstatement is not automatic and is granted only if the department is convinced the agent will comply with the law.

Does the Georgia Department of Insurance have to prove a crime happened before suspending or revoking a license?

No. The department can act on civil violations of insurance law without a criminal conviction. The standard of proof is lower than in criminal court — the department uses a preponderance of the evidence standard, meaning it is more likely than not that the violation occurred. A criminal acquittal does not prevent the department from taking action based on the same conduct.

What should an agent do if they receive a notice of suspension or revocation?

The agent should read the notice carefully to understand the specific violation alleged and the important date to request a hearing. Requesting a hearing is important because it gives the agent a chance to present evidence and testimony before the department makes a final decision. An agent should consider consulting an attorney who handles insurance licensing matters, as the process is formal and the stakes are high.