An individual life policy issued in Georgia contains a suicide exclusion covering two years from issue. The insured dies by suicide within that two-year period. Under O.C.G.A. § 33-25-5, what must the insurer pay?

Why D is correct

Under O.C.G.A. § 33-25-5, a Georgia life policy may exclude liability for death by suicide, sane or insane, within two years of issue — but if the policy contains that exclusion, the insurer must still pay an amount not less than the policy's reserve, computed under the Commissioner's reserve valuation method. Georgia deliberately deviates from the NAIC-model refund-of-premiums approach.

Why the other options are wrong

• A) A refund of premiums paid is the NAIC-model result and a documented distractor; Georgia requires the reserve.
• B) The policy does not void entirely; O.C.G.A. § 33-25-5 mandates a minimum payment of the reserve when the exclusion applies.
• C) The full face amount is not required during the exclusion period — only the reserve minimum.

Memory hook

Georgia pays the reserve, not the premiums.

Why C is correct

Under O.C.G.A. § 33-25-5, a Georgia life policy MAY exclude liability for suicide, sane or insane, within two years of issue — but if it does, the insurer must pay an amount not less than the policy's reserve, computed under the Commissioner's reserve valuation method. Georgia deliberately requires the reserve rather than a mere return of premiums, so the beneficiary receives the policy's accumulated value. The full face amount is payable only after the two-year exclusion period expires.

Why the other options are wrong

• A) The exclusion limits payment but does not eliminate it; at minimum the reserve must be paid under § 33-25-5.
• B) A refund of premiums is the model-law remedy, but Georgia requires payment of not less than the reserve.
• D) The full face amount becomes payable only after the two-year exclusion period; during it, the reserve is the floor.

Memory hook

Suicide inside two years in Georgia: pay the RESERVE, not just premiums.