A Georgia producer tells a client that the client's current policy with another insurer has far worse benefits than it really does, in order to persuade the client to let it lapse and buy a new policy. Which unfair trade practice is this?

Why D is correct

Under O.C.G.A. § 33-6-4(b)(2), misrepresenting the terms or benefits of a policy, or making any misrepresentation for the purpose of inducing a policyholder to lapse, forfeit, or surrender a policy, is an unfair trade practice — Georgia's statutory hook for twisting. Churning is the related but distinct practice of using a policy's cash values to buy additional coverage from the same insurer.

Why the other options are wrong

• A) Rebating concerns premium or value inducements, not misrepresentation to force a lapse or surrender. O.C.G.A. § 33-6-4(b)(2).
• B) Defamation targets false statements about a competitor's financial condition or business; the deception here concerns the client's own policy. O.C.G.A. § 33-6-4(b)(3).
• C) Churning uses cash values to buy more coverage from the same insurer; inducing a lapse to move to another policy is twisting. O.C.G.A. § 33-6-4(b)(2).

Memory hook

Twisting = lie to make them lapse and switch.