State RegulationsGA specificDifficulty 1/5
What penalty does O.C.G.A. § 33-6-4(c) attach to unlawful false representations made as to the policy being sold?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-6-4(c), making unlawful false representations as to the policy sold is classified as a misdemeanor. The administrative remedies available to the Insurance Commissioner — such as cease-and-desist orders with penalties up to $10,000 for each act or violation under O.C.G.A. § 33-6-9, plus suspension or revocation — are separate enforcement tools layered on top of the criminal classification.
Why the other options are wrong
- A) The $10,000-for-each-act figure belongs to the cease-and-desist penalty under O.C.G.A. § 33-6-9 after notice and hearing, not to the criminal classification in § 33-6-4(c).
- C) License revocation is an administrative remedy the Commissioner may pursue, but it is not automatic and is not the penalty classification set out in § 33-6-4(c).
- D) The statute classifies false representations about the policy sold as a misdemeanor, not a felony carrying mandatory imprisonment.
Memory hook
False statements about the policy sold = misdemeanor under § 33-6-4(c).