State RegulationsGA specificDifficulty 3/5
A Georgia producer claims that a colleague can be penalized for rebating under O.C.G.A. § 33-6-31 because that section lists unfair practices. What is wrong with this claim?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-6-31, that section states only the purpose of the unfair claims settlement practices article and contains no penalties or enumerated practices. Rebating and the other unfair trade practices are defined and penalized under O.C.G.A. § 33-6-4, with cease-and-desist enforcement — including penalties up to $10,000 for each act or violation after notice and hearing — available to the Insurance Commissioner under O.C.G.A. § 33-6-9.
Why the other options are wrong
- A) The claim is wrong because § 33-6-31 is the purpose statement of the claims article; it neither lists rebating nor provides any penalty.
- C) Rebating is squarely regulated — and penalized — as an unfair trade practice under O.C.G.A. § 33-6-4(b)(8).
- D) § 33-6-31 is a purpose clause for the claims-settlement article, not a line-of-insurance limitation; the premise confuses scope with content.
Memory hook
Section 31 is the why — the what is in 33-6-34 and the penalties in 33-6-4.