After an insurer is placed in liquidation, the Guaranty Association assumes its policy obligations and an insured must pay premiums that come due to the association. If the insured fails to pay a required premium, after how many days does the association's obligation regarding that policy terminate (except for incurred claims and net cash surrender value already due)?

Why D is correct

Under O.C.G.A. § 33-38-7(a)(3), nonpayment of a premium due to the association within 31 DAYS after the required payment date terminates the association's obligations under the policy — except for claims already incurred and any net cash surrender value due. This 31-day premium rule is the one context in Georgia where 31 days is the correct figure; the individual life policy grace period itself is 30 days under O.C.G.A. § 33-25-4.

Why the other options are wrong

• A) 10 days is the free-look period for individual life policies under O.C.G.A. § 33-25-8; it is not the premium-nonpayment rule for the Guaranty Association.
• B) 14 days is an examination-retake waiting period, not a period found in O.C.G.A. § 33-38-7(a)(3), which fixes the termination trigger at 31 days.
• C) 30 days is the individual life grace period under O.C.G.A. § 33-25-4; the guaranty premium-termination rule in O.C.G.A. § 33-38-7(a)(3) is 31 days, not 30.

Memory hook

Guaranty premiums run one day longer than grace — miss it by 31 days and the association walks away.