State RegulationsGA specificDifficulty 2/5
A Georgia life insurer wants to charge different premium rates to different individuals. Under O.C.G.A. § 33-6-4(b)(8)(A), when is a rate difference between individuals NOT unfair discrimination?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-6-4(b)(8)(A), unfair discrimination in life insurance means discriminating between individuals of the same class and equal expectation of life. Rate differences must track genuine classification, amount of insurance, and expectation of life; charging different rates to similarly situated individuals of the same class and amount is the prohibited conduct the Insurance Commissioner polices.
Why the other options are wrong
- B) The producer's commission arrangement has nothing to do with lawful rate classification; rate differences must be based on the statutory standard, not sales economics.
- C) The 'same class and essentially the same hazard' formulation is the accident & sickness standard; life insurance is governed by the same-class, same-amount, equal-expectation-of-life standard.
- D) Policyholder approval at application cannot waive the unfair discrimination prohibition — the statute protects the applicant regardless of consent.
Memory hook
Same class, same cash, same lifespan — same premium.