Under Georgia's unfair trade practices law, which party is prohibited from accepting a rebate of premiums or a special favor in dividends not specified in the insurance contract?

Why C is correct

Under O.C.G.A. § 33-6-4(b)(8)(B), the rebating prohibition runs both ways: it is an unfair trade practice for a producer or insurer to give or offer a rebate of premiums or special favors in dividends or benefits, and equally an unfair trade practice for any person to receive or accept such a rebate. An insured who knowingly accepts a reduced-premium deal off the books violates Georgia law along with the producer.

Why the other options are wrong

• A) The statute expressly reaches parties who receive or accept rebates, not only those who give or offer them.
• B) Producers who pay rebates out of commissions are covered even though no insurer funds the payment.
• D) There is no written-disclosure exception; rebating premiums is prohibited outright under O.C.G.A. § 33-6-4(b)(8)(B).

Memory hook

In Georgia, rebate-taking is as illegal as rebate-making.