State RegulationsGA specificDifficulty 3/5
An insurer marketing in Georgia wants to give each customer a gift card during a promotional campaign. Under O.C.G.A. § 33-6-4(b)(8)(C)(x), when is such a promotional item NOT treated as an unlawful rebate?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-6-4(b)(8)(C)(x), prizes, goods, gift cards, tickets, or merchandise are permitted as long as they do not exceed $100 in value per customer in aggregate per calendar year and are not contingent on the sale or renewal of a policy. Premiums themselves may never be rebated under any circumstance, and an item tied to a purchase loses the exception.
Why the other options are wrong
- A) Timing relative to the application does not matter; the value cap and the no-contingency condition are what control.
- C) The $25 figure is far below the statutory limit, and conditioning the gift on a purchase defeats the exception, which requires the item not be contingent on sale or renewal.
- D) No quarterly reporting requirement creates the exception; compliance with the $100 aggregate value limit does.
Memory hook
One hundred dollars a year, never tied to a sale — Georgia's gift-card safe harbor.