What action would make an agent guilty of rebating in Georgia?

In Georgia, rebating is considered an unethical practice in the insurance industry and refers specifically to the act of returning a portion of an insurance premium to the insured as an inducement to purchase the insurance policy. This practice undermines the competitive principles of the insurance market and can lead to unfair pricing and discrimination among consumers.

When an agent offers a rebate, or a portion of the premium, it can be seen as a way to entice potential customers by providing them with immediate financial benefits beyond what is typically allowed in the policy terms. This is prohibited under Georgia law because it can create an uneven playing field among agents and insurance companies, leading to potential harm to the overall market integrity.

The other options do not constitute rebating. Offering financial advice for free is a common practice and is generally encouraged as part of good customer service. Providing lower coverage limits for new customers can be a standard underwriting practice and does not involve returning premium payments. Charging additional fees for specific services is also acceptable as long as those fees are disclosed and agreed upon, reflecting the actual cost of those additional services rather than providing a monetary incentive related to the policy purchase.