State RegulationsGA specificDifficulty 2/5
An insured under an individual A&S policy in Georgia is disabled and, because of his condition, cannot manage the benefit payments. Under the standard payment-to-relatives provision, up to what amount may the insurer pay to a relative by blood or marriage who is equitably entitled to the benefits?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under O.C.G.A. § 33-29-3(b)(9)(B)(i), the insurer may make payment up to $1,000 to any relative by blood or marriage who is equitably entitled to the benefits when the insured cannot give a valid release. A payment made in good faith under this provision discharges the insurer to the extent of the amount paid.
Why the other options are wrong
- A) $500 is not the Georgia figure for payment to relatives.
- B) $5,000 is the bad-faith penalty amount under O.C.G.A. § 33-4-6 and has no connection to payment-to-relatives.
- C) $300,000 is a guaranty-association benefit cap under O.C.G.A. § 33-38-7, not a payment-to-relatives limit.
Memory hook
A grand to a kin in need discharges the deed.