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.