State RegulationsGA specificDifficulty 2/5
An insured dies while benefits under his individual accident and sickness policy remain payable, and no beneficiary has been designated. Under Georgia law, what is the effect of the insurer paying benefits to a relative by blood or marriage who is equitably entitled to them?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under O.C.G.A. § 33-29-3(b)(9)(B)(i), the insurer may pay up to $1,000 to a relative by blood or marriage who is equitably entitled to the benefits. Any such payment discharges the insurer to the extent of the amount paid, protecting the insurer from a later duplicate claim for the same dollars.
Why the other options are wrong
- A) The standard provision expressly permits payment to an equitably entitled relative even without a named beneficiary.
- B) The statute provides for no duplicate payment — the payment to the relative discharges the insurer.
- D) No Commissioner approval is required for a payment within the statutory limit.
Memory hook
Up to $1,000 to a fair-handed relative fully discharges the insurer.