State RegulationsGA specificDifficulty 3/5
Following the insolvency of a Georgia member insurer, the Guaranty Association's obligation to a policyholder terminates if the policyholder fails to pay a required premium within how many days after the date it is due (except for incurred claims or net cash surrender value already due)?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-38-7(a)(3), the association's obligations terminate if the policyholder does not pay a premium within 31 days after the required date, except for obligations on incurred claims or net cash surrender value already due. This is the one place in Georgia law where 31 days is the correct figure - it is not the individual life grace period, which is 30 days under O.C.G.A. § 33-25-4. Keeping the two rules separate is a classic exam trap.
Why the other options are wrong
- A) 30 days is the individual life grace period under O.C.G.A. § 33-25-4; the guaranty-association premium rule runs 31 days.
- C) 60 days is the demand period in the bad-faith statute, O.C.G.A. § 33-4-6, not the guaranty premium rule.
- D) 90 days is the A&S proof-of-loss period under O.C.G.A. § 33-29-3(b)(7), not the guaranty premium rule.
Memory hook
The guaranty association is the one place 31 wins.