State RegulationsGA specificDifficulty 3/5
A Georgia producer makes false statements about the terms and benefits of a policy she is selling. Which statement best describes the potential consequences under Georgia law?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Georgia treats this conduct on two tracks. Under O.C.G.A. § 33-6-9, violations found after notice and hearing support cease and desist action and penalties of up to $10,000 for each act or violation. Under O.C.G.A. § 33-6-4(c), making unlawful false representations as to a policy sold is a misdemeanor, so administrative and criminal exposure can arise from the same sales misstatements.
Why the other options are wrong
- B) The $5,000 figure belongs to the bad-faith penalty formula, which does not apply to sales misrepresentations.
- C) Surrender of commissions is not the statutory remedy for misrepresentation.
- D) Unlawful false representations as to a policy sold are expressly a misdemeanor under Georgia law.
Memory hook
Same lie, two tracks: administrative penalty plus a misdemeanor.