A Georgia producer, hoping to close a sale in Savannah, tells an applicant that a policy pays dividends 'every year guaranteed,' knowing the dividends are not guaranteed. Which unfair trade practice has the producer committed?

Why D is correct

Under O.C.G.A. § 33-6-4(b)(2), misrepresentation includes making false or misleading statements about the terms, benefits, or dividends of a policy, or about the financial condition of an insurer, to induce a purchase. Exaggerating non-guaranteed dividends as guaranteed is the classic Georgia misrepresentation and exposes the producer to Insurance Commissioner discipline.

Why the other options are wrong

• A) Controlled business concerns writing coverage on the licensee's own interests, not false statements about policy benefits under O.C.G.A. § 33-6-4(b)(2).
• B) Coercion involves boycott, intimidation, or forcing business decisions under O.C.G.A. § 33-6-4(b)(4), not exaggerated benefit claims.
• C) Rebating involves giving or accepting premium rebates or favors not specified in the contract under O.C.G.A. § 33-6-4(b)(8)(B), which did not occur here.

Memory hook

Guaranteed dividends that aren't = misrepresentation; the promise about the policy itself is the tell.