Completing the Application, Underwriting, and Delivering the Policy
An investor offers to fund a policy on a Georgia resident's life if the resident agrees at application to transfer ownership afterward. What is the concern?
Answer and explanation
Answer: D. The difficulty is that the arrangement is designed from the outset to place the benefit with a party who has no insurable interest in the life, which the statutory framework requires at the making of the contract. Premium paid by another, later assignment, and beneficiary designation are ordinary features of life insurance.Source: O.C.G.A. § 33-24-6 — 33-24-6(a) compared with an investor arrangement
More completing the application, underwriting, and delivering the policy questions
- An insured pays a single monthly premium and dies the next week, and the insurer pays the full face amount. Which contract characteristic does this illustrate?
- An insurer declines an application partly because of a consumer report. Which item belongs in the FCRA adverse-action notice?
- An insurer issues a policy although one health question on the application was left completely blank. What is the usual legal consequence for the insurer?
- An owner receives a replacement life policy approved under the Insurance Compact standards and decides during the required review period that it is unsuitable. What action preserves the free-look remedy?
- An underwriter wants to obtain an applicant's medical records from a treating physician. What is required first?
- Besides replacement, what may an application ask about the applicant's other coverage?
592 Georgia questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.