State RegulationsGA specificDifficulty 3/5
A Georgia insured asks a producer for a rebate of premium and the producer agrees to pay it. Under Georgia's unfair trade practices law, who has violated the law?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under O.C.G.A. § 33-6-4(b)(8)(B), Georgia prohibits not only giving or offering a rebate but also receiving or accepting one. Both the producer who pays the rebate and the insured who takes it violate the unfair trade practices statute.
Why the other options are wrong
- A) The statute expressly reaches the receiving side of the arrangement, so the insured is not exempt.
- B) The giving side is equally prohibited; the producer violates the statute by paying the rebate.
- C) The prohibition applies to the parties to the rebate arrangement itself, whether or not the agreement is private.
Memory hook
Rebates taint both hands — giver and taker.