State RegulationsGA specificDifficulty 1/5
Under Georgia law, an insurer or producer who knowingly makes a false representation concerning the terms or benefits of a policy being sold has committed a:
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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(c), an unlawful false representation as to the policy sold is a misdemeanor. Beyond the criminal classification, the same conduct is an unfair trade practice subject to cease and desist penalties under O.C.G.A. § 33-6-9, including up to $10,000 for each violation. Knowing whether criminal exposure attaches helps producers understand that misstatements in the sales process are more than regulatory footnotes.
Why the other options are wrong
- B) The statutory classification for false representations about the policy sold is a misdemeanor; felony treatment is reserved for other conduct, such as premium misappropriation above $1,000 under O.C.G.A. § 33-23-35(c).
- C) The conduct carries criminal exposure as a misdemeanor, in addition to administrative enforcement by the Insurance Commissioner.
- D) Contempt is not the mechanism; the misdemeanor classification and the Insurance Commissioner's cease and desist powers are.
Memory hook
False pitch about the policy sold equals misdemeanor.