State RegulationsGA specificDifficulty 3/5
A lapsed individual accident and sickness policy in Georgia is applied for reinstatement with a conditional receipt. If the insurer has not approved the application, when does the reinstated coverage take effect, and how are sickness losses treated?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-29-3(b)(4), with a conditional receipt the policy is reinstated upon approval or on the 45th day, whichever comes first. Reinstated coverage pays sickness losses beginning more than 10 days after reinstatement, while accident losses are covered immediately. Premiums accepted apply back for no more than 60 days.
Why the other options are wrong
- B) Reinstatement is not immediate without insurer approval — the conditional receipt makes it effective on approval or on the 45th day.
- C) The 30th day is not the reinstatement effective date, and sickness losses are covered after the 10-day window rather than never.
- D) The 45th-day date is right, but sickness losses begin only more than 10 days after reinstatement — they are not covered immediately.
Memory hook
45th day automatic; sickness waits 10, accidents don't wait.