State RegulationsGA specificDifficulty 3/5
A Georgia producer offers a client a choice: a rebate of part of the policy premium, or a modest promotional gift within the promotional-items allowance. Under Georgia law, which offer is lawful?
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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)(B), rebating premiums is prohibited without exception, while § 33-6-4(b)(8)(C)(x) permits promotional items only within the per-customer annual value cap and only when not contingent on a sale or renewal. The modest gift can be lawful; the premium rebate never is.
Why the other options are wrong
- A) A written acknowledgment does not legalize a premium rebate, which is prohibited outright.
- C) A client's request does not permit rebating; the prohibition covers any rebate offered or given on the premium.
- D) The statute contains an express promotional-items exception, so not every item of value given to a client is banned.
Memory hook
Never rebate the premium; modest gifts pass the cap test.