A producer in Columbus, Georgia persuades a policyholder to surrender an existing life policy by misstating its cash value and the benefits of the replacement policy he is selling. Under O.C.G.A. § 33-6-4, this conduct is:

Why C is correct

Under O.C.G.A. § 33-6-4(b)(2), misrepresenting the terms, benefits, or dividends of any policy - or making any misrepresentation for the purpose of inducing a policyholder to lapse, forfeit, or surrender a policy - is an unfair trade practice. This is Georgia's statutory hook for twisting. Misstating cash values to trigger a surrender falls squarely within it, exposing the producer to cease and desist penalties under O.C.G.A. § 33-6-9.

Why the other options are wrong

• A) Rebating involves returning part of the premium or offering valuable consideration as an inducement, not misrepresenting values to force a surrender.
• B) Controlled business concerns insurance written on the producer's own interests and is governed by the primary-purpose license test.
• D) A lower premium does not authorize misrepresentation; inducing a surrender through false statements is an unfair trade practice regardless of price.

Memory hook

Lying to force a surrender is Georgia's twisting hook.