The national guide explains the standard life provisions, nonforfeiture and dividend options, settlement options and riders. Georgia's required life provisions are in O.C.G.A. 33-25. Group life is in 33-27, replacement in Rule 120-2-24, and life solicitation in Rule 120-2-31.

Required provisions (33-25-3)

• Reinstated policies: can be contested for fraud or misrepresentation in the reinstatement application only for the same period as after original issue (33-25-12).
• Interest on death proceeds: if a claim isn't paid within 30 days of filing, interest runs at 12% a year (33-25-10). This doesn't apply to proceeds paid within 30 days of death, amounts under $5, or credit life.

Exclusions and suicide (33-25-5)

• Permitted exclusions are limited to:
  • war
  • aviation
  • specified hazardous occupations
  • living outside the continental U.S. and Canada
  • suicide within two years of issue, sane or insane
• When an exclusion applies, the insurer must still pay at least the reserve, adjusted for loans and dividends.

Free look (33-25-8)

• Individual life policies, other than those issued with a credit transaction, may be returned within 10 days after receipt for a refund. The policy is then void from the beginning.
• When "receipt" happens: the policy is deemed received after six months from the effective date, or after the time in which two premium notices have been sent, whichever is longer.

Beneficiaries and creditors

• Cash surrender values can't be reached by the insured's creditors unless the policy was assigned to that creditor or the transfer was made to defraud creditors (33-25-11).
• Slayer rule: a beneficiary who commits murder or voluntary manslaughter of the insured receives nothing. The proceeds go to contingent beneficiaries or other heirs (33-25-13).

Group life (33-27)

• An employer group must cover at least two employees at issue. A noncontributory plan covers every eligible employee who passes underwriting.
• 31-day grace period.
• Incontestable after two years, except for nonpayment.
• The insurer may pay up to $500 to someone who paid funeral or last-illness expenses.
• Conversion:
  • Apply and pay within 31 days after leaving employment or the eligible class. No evidence of insurability is required.
  • If the group plan ends, people insured at least five years may convert.
  • If the person dies during the conversion period, the convertible amount is paid as a group claim.
  • If the person wasn't told about the conversion right, the window extends to 15 days after notice, but never more than 60 days past the original deadline (33-27-5).

Replacement (Rule 120-2-24)

• The agent:
  • gets a signed statement on whether replacement is involved, plus a list of the policies being replaced
  • presents the Replacement Notice no later than when the application is taken, and sends it with the application
  • leaves copies of all sales material with the applicant
• The replacing insurer mails notice to the existing insurer within 3 working days.
• The existing insurer sends the owner a policy summary within 10 working days.
• Records: kept three years or until the next examination, whichever is later.
• Free look: the Replacement Notice tells the applicant about the 10-day right to examine the new policy.
• Exempt: credit life, group life, and replacement of annuity contracts, unless specifically included.
• Churning: a pattern of replacements bought from the same insurer is addressed in the rule's penalties section.

Solicitation (Rule 120-2-31)

• Before the sales presentation, the agent states that he is a life insurance agent and names the insurer.
• Buyer's Guide and Policy Summary: the Policy Summary normally comes before the first premium is accepted. With an unconditional refund of at least 10 days, it may come with the policy. Failing to provide either is treated as misrepresentation.
• Cost indexes are shown for 10 and 20 years, at 5% interest.

Exam traps

• Suicide: up to two years, and the insurer still pays at least the reserve.
• Free look: 10 days. Reinstatement: 3 years. Grace period: 30 days for individual policies, 31 days for group.
• Death claims unpaid 30 days after filing earn 12% interest.
• Annuity replacements are exempt from Georgia's life replacement rule.