A Georgia producer, hoping to earn a new commission, tells a policyholder that her current life policy is "about to lose all its dividends" — which is false — and urges her to surrender it and buy a replacement from him. Under Georgia law, this misrepresentation made to induce a policyholder to lapse, forfeit, or surrender a policy is:

Why D is correct

Under O.C.G.A. § 33-6-4(b)(2), it is an unfair trade practice to make any misrepresentation to induce a policyholder to lapse, forfeit, or surrender an existing policy — the Georgia statutory hook for twisting. A producer who twists policies to generate extra commissions faces cease-and-desist action and administrative penalties from the Insurance Commissioner under O.C.G.A. § 33-6-9.

Why the other options are wrong

• A) Replacing with another insurer does not cure the misrepresentation; inducing surrender through false statements is prohibited regardless of which insurer issues the new policy.
• B) Defamation under O.C.G.A. § 33-6-4(b)(3) means disparaging a competitor's financial condition or business, not misdescribing the policyholder's own policy.
• C) Rebating involves giving or accepting rebates of premiums or other valuable consideration, not misleading a policyholder into surrendering coverage.

Memory hook

Twisting = lying to make a policyholder 'twist' out of the old policy into a new one.