The national guide covers the basics of life and health insurance: insurable interest, the application, underwriting, premium factors and policy delivery. Georgia puts several of these rules into statute, mainly O.C.G.A. 33-24-3 (insurable interest), 33-24-6 (consent) and 33-24-7 (representations).

Insurable interest (33-24-3)

• Your own life: everyone has an unlimited insurable interest in his or her own life and may name any beneficiary, whether or not that person has an insurable interest.
• Someone else's life: an insurable interest exists when there is:
  • a reasonable expectation of financial benefit from the person's continued life, or
  • a substantial interest based on love and affection, for people closely related by blood or law
• Corporations: a corporation has an insurable interest in anyone holding at least 10% of its shares, and in its directors, officers and employees.
• STOLI: investors in a stranger-originated life insurance arrangement have neither kind of interest.
• Timing: in life insurance, insurable interest is needed at inception. In property insurance, it is needed at the time of loss (33-24-4).

Consent of the insured (33-24-6)

• A life or A&S policy on an individual generally requires that person to apply or consent in writing.
• Exceptions:
  • a spouse may insure the other spouse
  • either parent may sign an application for a family policy
• Employer-owned coverage requires each employee's written consent before the policy is issued.

Applications and policies

• Representations: statements in an application are representations, not warranties. A misstatement prevents recovery only if:
  • it was fraudulent, or
  • it was material to the risk, or
  • the insurer in good faith would not have issued the policy on the same terms (33-24-7)
• Start time: a policy, annuity or endowment begins at midday on its date unless an exact time is stated (33-24-15).
• Forms: policy and application forms are filed 90 days before use and are deemed approved if not acted on. The Commissioner may extend that once by up to 90 days (33-24-9).
• Solicitation: the agent identifies himself as a life insurance agent and names the insurer before presenting. The Buyer's Guide and Policy Summary must be provided (Rule 120-2-31).

Exam traps

• Your interest in your own life is unlimited, and the beneficiary needs no insurable interest.
• A corporation's interest extends to shareholders owning 10%+, plus directors, officers and employees.
• Employer-owned coverage needs written consent before issue.
• A misstatement voids coverage only if it was fraudulent or material or would have changed the insurer's decision. Any one of these is enough.