State RegulationsGA specificDifficulty 2/5
A Georgia resident applies to insure her own life and names her best friend — with whom she has no insurable-interest relationship — as beneficiary. Under O.C.G.A. § 33-24-3(b), the application is:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under O.C.G.A. § 33-24-3(b), a person has an unlimited insurable interest in her own life and may name any beneficiary she chooses — even one with no insurable-interest relationship to her. The insurable-interest and written-consent limits apply to insuring other people, not to coverage the insured owns on her own life.
Why the other options are wrong
- A) A stranger beneficiary does not void coverage on the insured's own life; O.C.G.A. § 33-24-3(b) permits any beneficiary.
- B) No pecuniary interest in the insured is required of the beneficiary when the insured owns coverage on her own life.
- C) There is no limitation to final-expense amounts; the insurable interest in one's own life is unlimited.
Memory hook
Your own life, any beneficiary you like.