State RegulationsGA specificDifficulty 2/5
An applicant in Atlanta returns a newly delivered individual life policy to the insurer within the examination period allowed by O.C.G.A. § 33-25-8 and Reg. 120-2-24. What is the legal effect of the return?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-25-8, an individual life policy (other than credit insurance) returned within the free-look period is void from the beginning — the parties are restored as if the contract never existed — and the purchaser receives a full refund of premium. Reg. 120-2-24's replacement notice reinforces this same 10-day examination right for replacements. No administrative fee or pro-rata retention is permitted.
Why the other options are wrong
- A) The policy does not linger in force during refund processing; the return makes it void from the beginning.
- C) Georgia law allows a full refund with no administrative deduction during the free-look period.
- D) No pro-rata coverage continuation applies; the statute voids the policy retroactively and refunds all premium.
Memory hook
Return in time, rewind the clock: void ab initio, premium back in full.