State RegulationsGA specificDifficulty 2/5
An applicant for a life insurance policy in Savannah makes several statements about her health history in the application. Under Georgia law, these statements are best characterized 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; otherwise the insurer remains bound. This consumer-protective framing means the insurer bears the burden of connecting the misstatement to the actual risk or loss, and trivial or immaterial inaccuracies do not void coverage.
Why the other options are wrong
- A) Georgia abolished the warranty approach for application statements; breach does not automatically void the policy.
- B) Representations do not expand the insurer's obligations; they describe the risk, and the policy terms still govern payment.
- C) Application statements do not waive any investigation right; the insurer retains full underwriting and claims-investigation authority.
Memory hook
In Georgia you represent, you don't warrant — unless the fib fed the loss, it stays harmless.