State RegulationsGA specificDifficulty 3/5
A Georgia insurer gives every customer who visits its booth a gift card, with no purchase or renewal required. Under the promotional-items exception to Georgia's rebating prohibition, what value may each customer receive per calendar year?
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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(b)(8)(C)(x), prizes, goods, gift cards, tickets, and merchandise are excepted from the rebating ban only when they do not exceed $100 in value per customer in aggregate per calendar year and are not contingent on a sale or renewal. The booth giveaway fits the exception only while each customer's aggregate yearly take stays at or under $100.
Why the other options are wrong
- A) $25 understates Georgia's allowance; the promotional exception in O.C.G.A. § 33-6-4(b)(8)(C)(x) runs to $100 per customer per calendar year.
- C) $500 quintuples the statutory ceiling; anything above $100 in aggregate per customer per year falls outside the exception and becomes unlawful rebating.
- D) $1,000 is far beyond the exception — at that value the giveaway is contingent consideration the rebating statute condemns.
Memory hook
A hundred bucks of swag a year — past that, it's a rebate.