State RegulationsGA specificDifficulty 3/5
After the Georgia Life and Health Insurance Guaranty Association assumes coverage, a policyholder stops paying the required premium. Under O.C.G.A. § 33-38-7(a)(3), the association's obligations terminate if the premium remains unpaid beyond:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-38-7(a)(3), the association's obligations terminate on nonpayment of premiums due within 31 days after the required payment date, except for obligations for incurred claims or net cash surrender value already due. This 31-day guaranty rule is distinct from the 30-day individual life grace period under O.C.G.A. § 33-25-4 — a common trap on the Georgia Life, Accident & Sickness examination.
Why the other options are wrong
- A) 30 days is the individual life grace period under O.C.G.A. § 33-25-4, not the guaranty association's premium rule.
- C) 60 days is the bad-faith demand period under O.C.G.A. § 33-4-6, not the guaranty premium deadline.
- D) 10 days relates to the life policy free-look period under O.C.G.A. § 33-25-8, not premium termination.
Memory hook
Guaranty premium rule breaks the 30-day habit: 31 days, only here.