State RegulationsGA specificDifficulty 3/5
Under the exceptions to Georgia's rebating prohibition in O.C.G.A. § 33-6-4(b)(8)(C), which of the following is PERMITTED?
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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)(i)-(ix), the permitted exceptions include food and refreshments at group presentations where no applications are accepted, business meals and entertainment, bonuses from surplus, reduced rates for employees and payroll-deduction plans, and commissions paid to licensed agents. The premiums themselves, however, may never be rebated to an applicant in connection with a sale.
Why the other options are wrong
- A) A bonus contingent on the purchase of a policy is valuable consideration for the sale — a rebate prohibited by O.C.G.A. § 33-6-4(b)(8)(B).
- C) Special favors in dividends or benefits not specified in the contract are exactly what § 33-6-4(b)(8)(B) forbids.
- D) Refunding part of the premium to reward the sale is the core rebating prohibition, not an exception.
Memory hook
Feed the crowd, not the file — refreshments with no applications are fine.