State RegulationsGA specificDifficulty 3/5
An insured's application contains an inaccurate statement that did not increase or contribute to the risk of loss. The insurer seeks to deny a claim based on that statement. Under Georgia law, the statement is treated as:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under O.C.G.A. § 33-24-7, statements in an insurance application are representations, not warranties. A misrepresentation defeats recovery only if it increases the risk of loss or contributes to the loss. Because the inaccurate statement here did neither, the insurer cannot use it as a basis to deny the claim even though the statement was in fact inaccurate.
Why the other options are wrong
- A) Application statements are representations, not warranties, so materiality and risk impact matter before any denial.
- B) The distinction is not between oral and written statements; the category is representation rather than warranty, and the test is risk impact.
- C) A representation that increases the risk of loss can absolutely defeat recovery; it is inaccurate to say representations never matter.
Memory hook
Representations, not warranties — only risky lies kill claims.