A Georgia producer tells an applicant that a life policy pays dividends every year, when dividends are discretionary and not guaranteed. Under O.C.G.A. § 33-6-4, this conduct is:

Why D is correct

Under O.C.G.A. § 33-6-4(b)(2), misrepresenting the terms, benefits, conditions, or dividends of a policy — or making any false statement designed to induce the purchase — is an unfair trade practice. Telling an applicant that discretionary dividends are paid every year misstates the policy's benefits and is precisely the conduct the statute targets; the Insurance Commissioner can discipline the producer for it.

Why the other options are wrong

• A) Coercion involves boycott, intimidation, or compelling a person to act against their will under O.C.G.A. § 33-6-4(b)(4) — not overstating benefits.
• B) Controlled business refers to writing coverage on the licensee's own interests; it has no connection to statements about dividends.
• C) Defamation requires a false or derogatory statement about a person or insurer calculated to cause injury, not a misstatement about the policy being sold.

Memory hook

Promise only what the policy pays — overstating dividends is misrepresentation.