State RegulationsGA specificDifficulty 1/5
Under O.C.G.A. § 33-24-3(b), what amount of life insurance may an individual purchase on the individual's own life, and who may be named as beneficiary?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-24-3(b), a person has an unlimited insurable interest in the person's own life and health, so the person may buy life insurance on himself or herself in any amount and may name any beneficiary — the beneficiary's own insurable interest is not tested when the insured owns the coverage on his or her own life. The practical result is that amount limits come from underwriting and financial justification, not from the insurable-interest statute.
Why the other options are wrong
- A) The statute imposes no income-based cap and no relative-only beneficiary rule on coverage of one's own life.
- C) The Commissioner does not pre-approve coverage amounts, and charities are not the only permitted beneficiaries.
- D) Nothing limits a person to a single policy, and the estate is not the only permissible beneficiary.
Memory hook
Your own life, your own limit: unlimited interest, any beneficiary.