State RegulationsGA specificDifficulty 2/5
Someone takes out life insurance on a stranger in Georgia without any insurable interest, with the benefits payable to himself. Under O.C.G.A. § 33-24-3(i), the contract is void and:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-24-3(i), insurance on another person is void unless the benefits are payable to the insured, the insured's personal representative, or a person with an insurable interest in the insured. When the contract is void for lack of insurable interest, the premiums that were paid must be repaid — but without interest.
Why the other options are wrong
- B) The premiums are not forfeited; the statute requires repayment.
- C) Repayment carries no interest — the six percent figure belongs to reinstatement and policy loan interest, not to this rule.
- D) There is no escrow or judicial division of premiums; the statute directs repayment without interest.
Memory hook
Void deal — premiums back, interest zero.