Under O.C.G.A. § 33-24-3(a), an 'insurable interest' in the life or health of another person exists when the interested person has:

Why A is correct

Under O.C.G.A. § 33-24-3(a), insurable interest is defined two ways: a reasonable expectation of pecuniary advantage through the continued life, health, or bodily safety of another person, or a substantial interest arising from love and affection between individuals closely related by blood or law. Written consent under § 33-24-6 is a separate requirement and does not by itself create insurable interest; neither notarization nor a court judgment substitutes for the statutory definition.

Why the other options are wrong

• B) Written consent under § 33-24-6 is a distinct requirement and does not itself establish an insurable interest.
• C) A notarized affidavit about a past transaction does not meet either statutory definition of insurable interest.
• D) A court judgment over property is not the statutory test; pecuniary expectation or close-family affection is.

Memory hook

Money advantage or family affection — the two roads to insurable interest.

Why A is correct

Under O.C.G.A. § 33-24-3(a), an insurable interest in another person exists where the applicant has a reasonable expectation of pecuniary advantage through the other person's continued life, health or safety, or a substantial interest founded on love and affection between individuals closely related by blood or law. Pecuniary stakes or close family affection — not paperwork or tenure — supply the interest.

Why the other options are wrong

• B) The insured's written permission is the separate consent requirement under O.C.G.A. § 33-24-6; it does not create an insurable interest.
• C) Georgia law imposes no two-year business-relationship test for insurable interest.
• D) Notarized family authorization is not the statutory test; the interest must be pecuniary or founded on a close blood or legal relationship.

Memory hook

Money or love — that's the interest.