State RegulationsGA specificDifficulty 2/5
An insurer tells its Georgia-appointed producers that any producer who also places business with a competing insurer will have his or her appointment terminated. What unfair trade practice is this?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under O.C.G.A. § 33-6-4(b)(4), boycott, coercion, and intimidation are unfair trade practices. Threatening producers with termination of their appointments unless they stop doing business with a competitor coerces their business decisions and is the classic Georgia coercion fact pattern enforced by the Insurance Commissioner.
Why the other options are wrong
- A) Misrepresentation under O.C.G.A. § 33-6-4(b)(2) concerns false statements about policies or insurers, not threats to cut off appointments.
- B) Twisting under O.C.G.A. § 33-6-4(b)(2) involves inducing lapse, forfeiture, or surrender by misrepresentation; no policy replacement is involved here.
- C) Unfair discrimination under O.C.G.A. § 33-6-4(b)(8)(A) concerns differing rates or terms between similarly situated insureds, not threats against producers.
Memory hook
Threats to force business choices = coercion; the bully, not the liar, is the coercion case.