State RegulationsGA specificDifficulty 2/5
A Georgia life producer, trying to close a sale in Columbus, offers to rebate part of her own commission to the applicant if he buys the policy today. Under O.C.G.A. § 33-6-4(b)(8)(B), what is the status of this offer?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-6-4(b)(8)(B), it is an unfair trade practice to offer or give, directly or indirectly, any rebate of premiums or any valuable consideration not specified in the contract as an inducement to purchase. Money from the producer's commission is still valuable consideration, so the offer is a prohibited rebate.
Why the other options are wrong
- A) The source of the funds is irrelevant; any valuable consideration not specified in the contract is an unlawful inducement.
- B) No family-member exception exists to Georgia's rebating prohibition.
- D) Written disclosure does not cure a rebate; offering it at all violates the statute.
Memory hook
Rebating the commission is still rebating — banned either way.