PassSprint
State RegulationsGA specificDifficulty 2/5

A licensed Georgia producer tells a prospective client in Savannah that if she buys a life insurance policy from him, he will return part of his commission, effectively reducing the quoted premium. What is this practice, and how is it treated under Georgia law?

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 B is correct

Under O.C.G.A. § 33-6-4(b)(8)(B), it is an unfair trade practice to give, offer to give, or promise directly or indirectly any rebate of premiums payable on the contract, any special favor in dividends or benefits, or any valuable consideration not specified in the policy. Returning commission to induce the sale is a classic rebate and exposes the producer to discipline by the Insurance Commissioner; the same subsection also bars the applicant from accepting such a rebate.

Why the other options are wrong

  • A) Twisting means misrepresenting policy terms to induce a policyholder to lapse, forfeit, or surrender an existing policy; no existing policy is being replaced here.
  • C) Coercion under O.C.G.A. § 33-6-4(b)(4) involves boycott, intimidation, or compelling a person to act against their will — not price inducements, and the conduct described is not lawful in any event.
  • D) Controlled business concerns writing the licensee's own interests and needs no special Commissioner approval; it is unrelated to giving premium rebates.

Memory hook

Giving back premium = giving up your license — Georgia bars both the giver and the taker.

Keep studying

Related Practice Questions

Your study shortcut

Install PassSprint

Add PassSprint to your Home Screen and open it like an app whenever you're ready to practice.

  1. Open this website in Chrome.
  2. Tap the three-dot menu (⋮) at the top right.
  3. Choose Install app or Add to Home screen → Install, then confirm.

Once added, tap the PassSprint icon on your Home Screen to get started.

Can't find the install option?

If you opened this link inside another app, copy it and open it in Chrome. Menu names can vary by browser.