State RegulationsGA specificDifficulty 1/5
Under O.C.G.A. § 33-6-4(b)(8)(A), unfair discrimination in life insurance occurs when an insurer charges different rates to individuals who are:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
O.C.G.A. § 33-6-4(b)(8)(A) sets the life insurance test: individuals of the same class, the same amount of insurance, and an equal expectation of life must be charged the same rates. The three-part standard ties price to actuarial risk, so differences in class, coverage amount, or life expectancy justify rate differences, while differences among actuarially identical lives do not — those amount to unfair discrimination the Insurance Commissioner can stop.
Why the other options are wrong
- B) Different classes may lawfully carry different rates; the statute requires equal treatment only within a class.
- C) Smokers and nonsmokers have different expectations of life, so different rates are actuarially justified and lawful.
- D) Different ages produce different expectations of life, so age-based rate differences are lawful under the statute.
Memory hook
Same class, same amount, same life expectancy — same price.