State RegulationsGA specificDifficulty 2/5
Two Georgia applicants for the same amount of life insurance are in the same class with an equal expectation of life, but an insurer quotes one of them a lower premium. Under O.C.G.A. § 33-6-4(b)(8)(A), what is the status of this pricing?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-6-4(b)(8)(A), life insurers may not discriminate between insureds of the same class and an equal expectation of life in the rates charged for the same amount of insurance. For accident and sickness coverage the parallel standard is the same class and essentially the same hazard.
Why the other options are wrong
- B) Rate freedom does not extend to unequal pricing between insureds of the same class and equal expectation of life.
- C) Discrimination based on race, color, or national origin is separately prohibited in all insurance, but same-class pricing equality applies regardless of the applicants' backgrounds.
- D) Marketing strategy is not a lawful basis for charging different rates within the same class.
Memory hook
Same class, same risk, same rate.