State RegulationsGA specificDifficulty 1/5
Under O.C.G.A. § 33-24-3(a), which of the following best describes what constitutes an "insurable interest" in Georgia?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under O.C.G.A. § 33-24-3(a), insurable interest exists where there is a reasonable expectation of pecuniary advantage through the continued life, health, or safety of another person, or a substantial interest founded on love and affection between individuals closely related by blood or law. The definition is broad enough to cover both financial relationships and close family bonds.
Why the other options are wrong
- A) Wrong: slight or remote emotional attachment is not enough; the affection-based prong requires a substantial interest between persons closely related by blood or law.
- C) Wrong: the statute does not define the interest by the insured's debts; it asks about pecuniary advantage from the insured's survival.
- D) Wrong: majority business ownership is neither necessary nor sufficient; even minority shareholders and key employees can support an insurable interest.
Memory hook
Money or family: pecuniary advantage, or love and affection with blood or law.