State RegulationsGA specificDifficulty 2/5
A producer in Columbus, Georgia asks how Georgia law limits premium differences between two accident and sickness applicants. Under the unfair discrimination rule, accident and sickness rates may differ between individuals only when they are:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-6-4(b)(8)(A), the accident and sickness discrimination standard differs from the life standard: rates may differ only between individuals of the same class and essentially the same hazard. Charging two applicants who present the same hazard different rates, or treating unlike hazards alike, is unfair discrimination subject to Insurance Commissioner enforcement.
Why the other options are wrong
- A) Age band and gender are not the statutory test; the Georgia standard is same class and essentially the same hazard under O.C.G.A. § 33-6-4(b)(8)(A).
- B) Residence in the same county has no bearing on the discrimination standard under O.C.G.A. § 33-6-4(b)(8)(A).
- D) Premium payment mode is a billing arrangement, not the statutory discrimination test under O.C.G.A. § 33-6-4(b)(8)(A).
Memory hook
Life = equal expectation of life; A&S = essentially the same hazard — hazard is the A&S word.