State RegulationsGA specificDifficulty 1/5
Under Georgia law, an insurer or agent that makes unlawful false representations about a policy being sold commits:
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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), making unlawful false representations as to the policy sold is a misdemeanor. The criminal classification attaches to the act of misrepresentation itself — no cease and desist order, hearing, or prior warning is a precondition. In practice this means false statements about policy terms, benefits, or dividends carry both regulatory exposure before the Insurance Commissioner and criminal exposure as a misdemeanor.
Why the other options are wrong
- B) A felony is not the classification for false representations about a policy sold; the statute grades it as a misdemeanor.
- C) A cease and desist order is not a precondition; the misdemeanor attaches directly to the misrepresentation.
- D) The conduct is not limited to administrative discipline; it is a criminal misdemeanor under the Georgia Insurance Code.
Memory hook
Lie about the policy, earn a misdemeanor — Georgia grades the fib.