State RegulationsGA specificDifficulty 2/5
Under Georgia's unfair-discrimination rules for life insurance, when may an insurer charge different premiums to two applicants?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-6-4(b)(8)(A), a life insurer may not discriminate between applicants of the same class and the same amount of insurance and an equal expectation of life. Different treatment is permissible only where one of those equalizers is absent — different class, different amount, or different expectation of life — which is how actuarially sound underwriting remains lawful while arbitrary differentiation does not.
Why the other options are wrong
- B) An underwriting manual cannot override statute; distinctions must rest on the class, amount, and expectation-of-life criteria of O.C.G.A. § 33-6-4(b)(8)(A).
- C) There is no advance-approval mechanism for premium differentials; lawfulness depends on actuarial criteria, not on a Commissioner waiver.
- D) Identical premiums for everyone is not the rule — Georgia permits differentiation between applicants who differ in class, amount, or expectation of life.
Memory hook
Same class, same amount, same life span — same price.