unfair trade practices LH laws and rules

Rebating

false or misleading comparisons to convince the policyholder to switch — even when it’s not in their best interest.

Telling a client that their current life policy is worthless or that a new policy is cheaper, when it's actually more expensive or offers less coverage.

Churning

Persuading a policyholder to unnecessarily replace a policy just to generate commissions, often using the cash value from one policy to fund another.

An agent convinces a client to cancel a whole life policy (with good cash value) and buy a new one — not because it’s better, but just so the agent gets paid again.

Misrepresentation

Making false statements about a policy, its benefits, terms, or conditions.

Saying a life insurance policy is "guaranteed to pay out no matter what," when it actually has contestability periods and exclusions.

Rebating

Offering part of the commission or other valuable gifts to the buyer as an incentive to purchase the policy. This is illegal in most states, including Georgia.

“If you buy this policy, I’ll give you $200 back from my commission.”

Defamation

Making false or malicious statements about another insurer or agent to hurt their reputation.

Telling a client, “That company’s policies are garbage and they never pay claims,” when that’s not true.

Coercion or Intimidation

Using threats or pressure to force someone into buying or canceling a policy.

If you don’t buy this policy now, you might not qualify tomorrow and your family could be left with nothing.”

False Advertising

Using ads or materials that are intentionally misleading about a product’s benefits, cost, or features.

Advertising a life policy as “free coverage for life” when premiums are actually required.