Which of the following is considered an Unfair Trade Practice in Georgia?

Coercion is recognized as an Unfair Trade Practice in Georgia because it involves pressuring or forcing a consumer into making a decision regarding an insurance product or service. This type of behavior undermines the principle of free choice and informed consent, which are foundational in insurance transactions. Coercion may take many forms, such as implying negative consequences for refusing a policy or suggesting that a policyholder will lose existing benefits if they do not comply. The intent behind prohibiting coercive practices is to protect consumers from being manipulated or taken advantage of by insurers.

The other practices mentioned, while they may also have ethical implications, do not fall under the legal classification of coercion as defined by Georgia law. For example, raising premiums without notice may violate principles of transparency but does not inherently involve coercion. Similarly, promising guaranteed returns may be misleading or deceptive, but it does not involve pressure or force. Reducing benefits covertly can be seen as unethical, particularly if not disclosed properly, but it similarly lacks the direct element of coercion that is critical to identifying an unfair trade practice.