State RegulationsGA specificDifficulty 2/5
Which of the following is permitted under Georgia's rebating rules?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-6-4(b)(8)(C)(i)-(ix), permitted exceptions to the rebating ban include providing food or refreshments at group presentations where no applications are accepted, business meals and entertainment, bonuses paid from surplus, and reduced rates for employees and payroll-deduction plans. Because no application is taken at the presentation, the refreshments cannot function as an inducement to purchase.
Why the other options are wrong
- A) Returning premium in exchange for buying more coverage is contingent on a sale and is a classic prohibited rebate.
- B) Gift cards above the annual promotional cap exceed the statutory exception, and tying them to closing a sale makes them rebates regardless.
- D) Paying sales commissions to an unlicensed person is unlawful conduct in its own right and is no exception to the rebating ban.
Memory hook
Cookies yes, commissions no — snacks at a no-application meeting are safe.