Completing the Application, Underwriting, and Delivering the Policy
How does an insurable interest requirement bear on stranger-originated life insurance?
Answer and explanation
Answer: D. Stranger-originated arrangements place the benefit with someone who has no insurable interest in the life at inception, which is the requirement the statute imposes through its consent and relationship provisions. Consent alone does not supply the interest, the passage of the contestable period does not create it, and no face-amount threshold applies.Source: O.C.G.A. § 33-24-6 — 33-24-6 read as a limit on stranger-originated arrangements
More completing the application, underwriting, and delivering the policy questions
- An application stipulates that coverage will not begin until the policy is delivered, accepted, and the first premium is paid. If the policy is delivered but the initial premium remains unpaid, why is the insurer not liable for a claim?
- 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 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?
- 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?
592 Georgia questions like this one.
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