Key Takeaways
- Georgia requires a 10-day free look period for life insurance policies (30 days for replacement policies)
- Life insurance policies must include a 2-year incontestability clause under Georgia law
- Suicide exclusion in Georgia is limited to 2 years from policy issue date
- Georgia requires insurers to pay claims within 60 days of receiving proof of death
- Misstatement of age provisions must adjust benefits rather than void the policy
Georgia Life Insurance Policy Requirements
Georgia law imposes specific requirements on life insurance policies sold in the state. These requirements protect consumers and ensure policy standardization under Title 33.
Free Look Period
Georgia provides a free look period for life insurance:
| Policy Type | Free Look Period |
|---|---|
| Standard Life Policy | 10 days |
| Replacement Policy | 30 days |
| Senior Citizens (60+) | 30 days |
| Annuities | 10 days |
During the free look period, the policyholder can:
- Review the policy
- Return it for a full refund of premiums paid
- No questions asked, no penalty
Exam Tip: Georgia's standard free look for life insurance is 10 days, but replacement policies and policies sold to seniors 60+ get 30 days. This is frequently tested.
Incontestability Clause
Georgia requires a 2-year incontestability clause in all life insurance policies:
- After 2 years from issue, the insurer cannot contest the policy based on misstatements in the application
- Exceptions: Fraud, non-payment of premiums
- The clause protects beneficiaries from having claims denied due to application errors
Georgia Specific Rules
- Incontestability period begins from the issue date, not effective date
- If policy lapses and is reinstated, a new 2-year period may begin
- Cannot contest based on health misstatements after 2 years
Suicide Clause
Georgia limits the suicide exclusion:
- Suicide exclusion cannot exceed 2 years from policy issue
- After 2 years, death by suicide is covered like any other death
- If policy is reinstated, new 2-year period begins from reinstatement
- Limited to refund of premiums paid during exclusion period
Misstatement of Age
Georgia requires specific handling of age misstatements:
Key Rules
| Scenario | Requirement |
|---|---|
| Age Understated | Benefits reduced to amount premiums would have purchased |
| Age Overstated | Refund excess premium paid |
| Cannot Void Policy | Policy remains in force with adjusted benefits |
Georgia Specific: The insurer cannot void a policy for misstatement of age. Benefits must be adjusted instead.
Grace Period
Georgia requires life insurance policies to include:
- Minimum 31-day grace period for premium payment
- Policy remains in force during grace period
- If death occurs during grace period, claim paid minus overdue premium
- Grace period begins from premium due date
Claims Payment Requirements
Georgia has specific requirements for paying life insurance claims:
| Requirement | Timeframe |
|---|---|
| Acknowledge Claim | Within 15 days |
| Request Information | Within 15 days |
| Pay Claim | Within 60 days of proof of death |
| Interest on Late Payment | Required after 60 days |
Proof of Death
Acceptable proof includes:
- Certified death certificate
- Attending physician's statement
- Coroner's report
Policy Delivery Requirements
Georgia requires:
- Policy delivered within 60 days of issue
- Delivery must include policy summary
- Receipt should be obtained
- Electronic delivery permitted with written consent
How long is the free look period for a standard life insurance policy in Georgia?
What happens if a policyholder misstated their age on a Georgia life insurance application?