A Georgia health insurer charges two applicants in the same classification and with essentially the same hazard materially different premium rates for identical accident and sickness coverage. Under Georgia law, this conduct is:

Why B is correct

Under O.C.G.A. § 33-6-4(b)(8)(A), accident and sickness insurers may not discriminate between insureds of the same class and essentially the same hazard in the rates charged, the premiums collected, or the benefits paid. Charging materially different premiums to applicants in the same classification with essentially the same hazard is therefore an unfair discrimination practice subject to Commissioner action.

Why the other options are wrong

• A) Accident and sickness rates are expressly covered by the unfair discrimination rule; no exemption exists for health coverage.
• C) Place of residence is not a permitted basis for rate differences between applicants of the same class and essentially the same hazard.
• D) Twisting involves inducing a policyholder to lapse or surrender a policy through misrepresentation; the described conduct is discrimination, not twisting.

Memory hook

Same class, same hazard, same premium.