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State RegulationsGA specificDifficulty 2/5

A Georgia insurer gives each customer who attends a marketing event a gift card, and the gift is not contingent on the purchase or renewal of any policy. Under O.C.G.A. § 33-6-4(b)(8)(C)(x), the aggregate value of such prizes, goods, or merchandise per customer per calendar year must not exceed what amount to fall within the promotional exception to the rebating ban?

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Answer & full 3-part explanation (select an option above, or peek)

Why D is correct

Under O.C.G.A. § 33-6-4(b)(8)(C)(x), prizes, goods, gift cards, tickets, or merchandise valued at not more than $100 per customer in the aggregate per calendar year — and not contingent on a sale or renewal — fall outside the rebating prohibition. Above that aggregate value, or if the gift is tied to buying or renewing a policy, the item becomes an unlawful rebate under O.C.G.A. § 33-6-4(b)(8)(B).

Why the other options are wrong

  • A) $25 is not the Georgia promotional threshold; the exception in § 33-6-4(b)(8)(C)(x) is keyed to $100 per customer per calendar year.
  • B) $1,000 has no role in the promotional-exception rule; it is unrelated to the rebating carve-out.
  • C) $5,000 relates to the bad-faith penalty formula under O.C.G.A. § 33-4-6, not to promotional gifts under the rebating exception.

Memory hook

A hundred bucks a year buys goodwill — more than that is a rebate.

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