An insurer charges two accident and sickness applicants in the same class with essentially the same hazard different premiums because one lives in Savannah and the other in Atlanta. Under Georgia law, this is:

Why D is correct

For accident and sickness coverage, O.C.G.A. § 33-6-4(b)(8)(A) requires equal rates for individuals of the same class and essentially the same hazard. The A&S standard is hazard-based, unlike the life standard's class, amount, and expectation-of-life formula; once class and hazard match, geography alone does not justify different premiums, so the pricing shown to the Savannah and Atlanta applicants is unfair discrimination.

Why the other options are wrong

• A) Geographic rating cannot override the same-class, same-hazard standard; the A&S statute requires equal rates for equal hazards.
• B) No premium or inducement is being returned to the applicants, so the rebate provisions are not implicated.
• C) Misrepresentation involves false statements about policy terms or benefits, not rate-setting between insureds.

Memory hook

A&S: same class and same hazard must mean same premium.