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State RegulationsGA specificDifficulty 2/5

A Georgia insurer plans to give customers gift cards as a promotion. Under O.C.G.A. § 33-6-4(b)(8)(C)(x), the giveaway is permitted only if the total value per customer per calendar year does not exceed which amount, and the items are not contingent on a sale or renewal?

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Answer & full 3-part explanation (select an option above, or peek)

Why B is correct

O.C.G.A. § 33-6-4(b)(8)(C)(x) carves out a promotional exception allowing prizes, goods, gift cards, tickets, or merchandise worth no more than $100 per customer in aggregate per calendar year, provided the items are not contingent on a sale or renewal. Anything above the annual cap, or tied to buying or renewing a policy, collapses back into an illegal rebate under § 33-6-4(b)(8)(B) and exposes the insurer and producer to Insurance Commissioner action.

Why the other options are wrong

  • A) $25 understates the statutory cap and would wrongly bar the full range of permitted promotional items.
  • C) $500 exceeds the $100 annual per-customer ceiling; giving items at that level is rebating, not promotion.
  • D) $1,000 is far beyond the promotional exception; no exception in the statute tolerates gift value at that level per customer.

Memory hook

$100 a year, never tied to a sale — beyond that, it's a rebate.

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