State RegulationsGA specificDifficulty 2/5
An insurer underwriting applicants in Georgia uses race as one of several rating factors. How is this treated under Georgia's unfair trade practices law?
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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)(A), making any distinction or discrimination on the basis of race, color, or national origin is a prohibited unfair trade practice in any insurance transaction. The prohibition is categorical: it does not become lawful because race is one factor among several, nor is it limited to a particular line of coverage.
Why the other options are wrong
- A) Mixing race with other factors does not cure the violation; any use of race as a rating factor is prohibited.
- B) The prohibition on race, color, and national-origin discrimination applies to any insurance, not merely to one line.
- C) The rule is not limited to cases where race is the sole factor; using it at all, even partially, violates the statute.
Memory hook
Race never rates in Georgia.