State RegulationsGA specificDifficulty 2/5
Which of the following is permitted under Georgia's unfair-trade-practices rules?
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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(b)(8)(C)(i)-(ix), Georgia excepts several ordinary business practices from the rebating and unfair-discrimination prohibitions, including food and refreshments served at group presentations where no insurance applications are accepted, business meals and entertainment, bonuses payable from surplus, and reduced rates for employees and payroll-deduction plans. Refreshments at a no-selling educational event fall squarely within the permitted category.
Why the other options are wrong
- B) Returning premium for early renewal is a rebate of premiums, which O.C.G.A. § 33-6-4(b)(8)(B) prohibits and none of the statutory exceptions cover.
- C) A special dividend bonus offered to induce switching is valuable consideration not specified in the contract — a prohibited rebate rather than a permitted bonus from surplus.
- D) A below-published rate for a relative in the same class and amount is unfair discrimination under O.C.G.A. § 33-6-4(b)(8)(A), unless it fits a specific exception such as the employee rate, which a mere family relationship does not supply.
Memory hook
Snacks yes, discounts no — feeding a crowd is fine, feeding an account is not.