A Georgia individual life policy lapsed because of unpaid premiums. Under O.C.G.A. § 33-25-3, within what period may the policyowner apply to reinstate the policy, and on what interest terms?

Why D is correct

Under O.C.G.A. § 33-25-3, a lapsed individual life policy may be reinstated within 3 years of the premium default upon payment of all overdue premiums plus interest not exceeding 6% per annum compounded annually; the insurer may also require evidence of insurability. The 2-year and 5-year windows are common distractors from other jurisdictions' rules, and Georgia caps the reinstatement interest at 6% — the same cap as the standard policy-loan provision.

Why the other options are wrong

• A) Two years is not the Georgia reinstatement window, and overdue premiums carry interest of up to 6% per annum compounded annually.
• B) Five years is a distractor window, and the insurer may not select an unlimited interest rate; the statute caps it at 6%.
• C) One year is far shorter than the statutory window, and the Commissioner does not fix reinstatement interest; the 6% cap does.

Memory hook

3 years to reinstate, 6% cap on the back premiums.

Why A is correct

Under O.C.G.A. § 33-25-3, a lapsed life policy may be reinstated within three years of premium default upon payment of all overdue premiums plus interest not exceeding 6% per annum compounded annually, with evidence of insurability if the insurer requires it. The 6% ceiling mirrors the maximum policy loan interest rate in the same statute.

Why the other options are wrong

• B) Two years is a documented distractor window, and there is no authority for interest above the statutory cap.
• C) Five years overstates the period, and reinstatement requires overdue premiums plus interest — not premiums alone.
• D) Six months is far short of the three-year window, and evidence of insurability alone does not satisfy the overdue premium and interest requirement.

Memory hook

Three years, six percent, back on the books.