Under Georgia law, an insurer or producer who knowingly makes a false representation concerning the terms or benefits of a policy being sold has committed a:

Why A is correct

Under O.C.G.A. § 33-6-4(c), an unlawful false representation as to the policy sold is a misdemeanor. Beyond the criminal classification, the same conduct is an unfair trade practice subject to cease and desist penalties under O.C.G.A. § 33-6-9, including up to $10,000 for each violation. Knowing whether criminal exposure attaches helps producers understand that misstatements in the sales process are more than regulatory footnotes.

Why the other options are wrong

• B) The statutory classification for false representations about the policy sold is a misdemeanor; felony treatment is reserved for other conduct, such as premium misappropriation above $1,000 under O.C.G.A. § 33-23-35(c).
• C) The conduct carries criminal exposure as a misdemeanor, in addition to administrative enforcement by the Insurance Commissioner.
• D) Contempt is not the mechanism; the misdemeanor classification and the Insurance Commissioner's cease and desist powers are.

Memory hook

False pitch about the policy sold equals misdemeanor.