State RegulationsGA specificDifficulty 3/5
A lapsed individual A&S policy in Georgia is reinstated after the insurer issued a conditional receipt. Which statement correctly describes the coverage that takes effect?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-29-3(b)(4), a policy reinstated with a conditional receipt takes effect upon approval of the application or, absent earlier disapproval, on the 45th day after the reinstatement application is given. Reinstated coverage pays losses for sickness beginning more than 10 days after the reinstatement date, while losses from accidents are covered immediately; premiums accepted may be applied back no more than 60 days.
Why the other options are wrong
- A) Sickness losses carry a 10-day waiting period after reinstatement; only accident losses are covered immediately.
- C) The treatment is reversed and the figures are wrong: accidents are immediate and sickness waits more than 10 days.
- D) The 45th day is the effective date of reinstatement absent insurer approval, not a waiting period that starts afterward.
Memory hook
Accidents now, sickness after 10.