An agent in Atlanta tells a policyholder that her current coverage will be cancelled unless she purchases an additional policy from him. Under Georgia unfair trade practices law, this pressure tactic is best described as:

Why C is correct

Under O.C.G.A. § 33-6-4(b)(4), boycott, coercion, and intimidation of policyholders or prospects are unfair trade practices. Threatening to cancel or harm a customer's existing coverage in order to force an additional purchase is a classic coercion scenario. The Insurance Commissioner may pursue cease and desist remedies, including penalties of up to $10,000 for each act, under O.C.G.A. § 33-6-9.

Why the other options are wrong

• A) Rebating involves offering part of the premium or other valuable consideration as an inducement, not threatening cancellation to force a sale.
• B) Twisting is misrepresenting policy terms to induce a lapse, forfeiture, or surrender; the tactic here is a threat, not a misstatement of terms.
• D) Controlled business concerns insurance written on the producer's own interests and has nothing to do with pressuring a policyholder.

Memory hook

Threaten to force a sale and Georgia calls it coercion.