State RegulationsGA specificDifficulty 1/5
Before an insurer's conduct can constitute an unfair claims settlement practice under Georgia law, the conduct must satisfy which standard?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-6-33, the enumerated practices in § 33-6-34 become actionable unfair claims settlement practices only when committed with such frequency as to indicate a general business practice. An isolated lapse, however sloppy, does not by itself establish the violation. This frequency-plus-knowledge architecture is what separates a disciplinary pattern from an occasional claims-handling error.
Why the other options are wrong
- A) A single complaint or incident does not satisfy the frequency standard; the statute demands a pattern indicating general practice.
- C) The law sets no dollar threshold for the loss; the test is the frequency of the conduct, not the size of the claim.
- D) Intent to deceive is not required; a negligent but repeated pattern can constitute the practice.
Memory hook
Once is a mistake, often is a practice — frequency makes it unfair.