State RegulationsGA specificDifficulty 3/5
Which practice is permitted under the rebate exceptions in O.C.G.A. § 33-6-4(b)(8)(C)?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
O.C.G.A. § 33-6-4(b)(8)(C) enumerates the business practices Georgia permits despite the rebate ban, including serving food and refreshments at group presentations where no insurance applications are accepted. Because no application is taken on the spot, the hospitality cannot function as a per-sale inducement. The other listed practices all condition value on a purchase or grant special treatment outside the contract, which the exception list does not tolerate.
Why the other options are wrong
- A) Returning half of the first premium is a direct rebate of premiums, prohibited by § 33-6-4(b)(8)(B) with no exception.
- B) A prize contingent on purchasing a policy violates the express condition that promotional items not depend on a sale or renewal.
- C) Special dividend favors for preferred customers are expressly barred as unfair discrimination in dividends or benefits.
Memory hook
Cookies yes, discounts no: hospitality without applications is safe.