After a Georgia producer sells a policy, the insured offers to split the commission if the producer kicks back part of the first premium, and the producer agrees. Under O.C.G.A. § 33-6-4(b)(8)(B):

Why C is correct

O.C.G.A. § 33-6-4(b)(8)(B) reaches both sides of the deal: giving or offering a rebate of premiums or other valuable consideration is prohibited, and so is receiving or accepting one. The producer who returns premium and the insured who accepts it both violate the statute, regardless of who initiated the arrangement, and the Insurance Commissioner may discipline the producer for the improper inducement.

Why the other options are wrong

• A) The statute expressly prohibits receiving or accepting rebates, so the insured's acceptance is also unlawful; liability is not one-sided.
• B) Who initiated the offer is irrelevant; a rebate of premium not specified in the contract is unlawful either way.
• D) Insurer approval does not legitimize a rebate; the prohibition targets the premium inducement itself.

Memory hook

Rebating cuts both ways: giver and taker both break the rule.

Why D is correct

Under O.C.G.A. § 33-6-4(b)(8)(B), Georgia prohibits not only giving or offering a rebate but also receiving or accepting one. Both the producer who pays the rebate and the insured who takes it violate the unfair trade practices statute.

Why the other options are wrong

• A) The statute expressly reaches the receiving side of the arrangement, so the insured is not exempt.
• B) The giving side is equally prohibited; the producer violates the statute by paying the rebate.
• C) The prohibition applies to the parties to the rebate arrangement itself, whether or not the agreement is private.

Memory hook

Rebates taint both hands — giver and taker.