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State RegulationsGA specificDifficulty 2/5

An insurer tells its Georgia agents that their agency agreements will be terminated unless they place all of their accident & sickness business through the insurer's affiliate, and it pressures other agents to stop doing business with a rival insurer. Under O.C.G.A. § 33-6-4(b)(4), these actions are:

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Answer & full 3-part explanation (select an option above, or peek)

Why D is correct

Under O.C.G.A. § 33-6-4(b)(4), an unfair trade practice includes any boycott, coercion, or intimidation, or any act calculated to compel a person to act against their will in connection with insurance. Forcing agents to route business under threat of termination and pressuring others to abandon a rival are classic coercive and boycott conduct that the Insurance Commissioner can restrain.

Why the other options are wrong

  • A) Controlled business refers to coverage written on the licensee's own interests; it does not describe threats used to steer agent business.
  • B) Rebating involves giving or accepting premiums or valuable consideration not specified in the contract; no rebate appears in this fact pattern.
  • C) Twisting requires misrepresentation to induce a policyholder to lapse, forfeit, or surrender an existing policy — not pressure applied to agents.

Memory hook

Threats and pressure to force insurance business = coercion.

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