To close a sale in Savannah, a Georgia producer offers to return part of her own commission to the applicant and to pay the first month's premium out of pocket. Under O.C.G.A. § 33-6-4, this arrangement is:

Why D is correct

Under O.C.G.A. § 33-6-4(b)(8)(B), it is an unfair trade practice to give or offer, directly or indirectly, rebates of premiums, special favors in dividends or benefits, or any valuable consideration not specified in the contract. Returning commission and paying the applicant's premium are classic indirect rebates, and neither disclosure nor relabeling the payment cures the violation — the practice is prohibited outright in Georgia.

Why the other options are wrong

• A) Disclosure does not legitimize rebating; O.C.G.A. § 33-6-4(b)(8)(B) prohibits the offer itself, written notice to the insurer notwithstanding.
• B) Even commission income cannot be used to induce a sale — returning it as an inducement is exactly the indirect rebate the statute bans.
• C) Relabeling a premium payment as a gift changes nothing; the statute reaches any valuable consideration not specified in the contract.

Memory hook

Discounting the deal discounts your license — no rebates, ever.