A licensed Georgia producer tells a prospective client in Savannah that if she buys a life insurance policy from him, he will return part of his commission, effectively reducing the quoted premium. What is this practice, and how is it treated under Georgia law?

Why B is correct

Under O.C.G.A. § 33-6-4(b)(8)(B), it is an unfair trade practice to give, offer to give, or promise directly or indirectly any rebate of premiums payable on the contract, any special favor in dividends or benefits, or any valuable consideration not specified in the policy. Returning commission to induce the sale is a classic rebate and exposes the producer to discipline by the Insurance Commissioner; the same subsection also bars the applicant from accepting such a rebate.

Why the other options are wrong

• A) Twisting means misrepresenting policy terms to induce a policyholder to lapse, forfeit, or surrender an existing policy; no existing policy is being replaced here.
• C) Coercion under O.C.G.A. § 33-6-4(b)(4) involves boycott, intimidation, or compelling a person to act against their will — not price inducements, and the conduct described is not lawful in any event.
• D) Controlled business concerns writing the licensee's own interests and needs no special Commissioner approval; it is unrelated to giving premium rebates.

Memory hook

Giving back premium = giving up your license — Georgia bars both the giver and the taker.