2021 Georgia Code
Title 33 - Insurance
Chapter 24 - Insurance Generally
Article 1 - General Provisions
§ 33-24-7. Statements and Descriptions in Applications or in Negotiations Deemed Representations and Not Warranties; Effect of Misrepresentations Upon Recovery Under Policies

1. All statements and descriptions in any application for an insurance policy or annuity contract or in negotiations for such, by or in behalf of the insured or annuitant, shall be deemed to be representations and not warranties.
2. Misrepresentations, omissions, concealment of facts, and incorrect statements shall not prevent a recovery under the policy or contract unless:
   1. Fraudulent;
   2. Material either to the acceptance of the risk or to the hazard assumed by the insurer; or
   3. The insurer in good faith would either not have issued the policy or contract or would not have issued a policy or contract in as large an amount or at the premium rate as applied for or would not have provided coverage with respect to the hazard resulting in the loss if the true facts had been known to the insurer as required either by the application for the policy or contract or otherwise.

(Code 1933, § 56-2409, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 1982, p. 3, § 33.)

- For survey article on insurance, see 34 Mercer L. Rev. 177 (1982). For survey article on insurance law for the period from June 1, 2002 through May 31, 2003, see 55 Mercer L. Rev. 277 (2003). For annual survey of insurance law, see 56 Mercer L. Rev. 253 (2004). For survey article on construction law, see 60 Mercer L. Rev. 59 (2008). For survey article on insurance law, see 60 Mercer L. Rev. 191 (2008). For annual survey of law on insurance, see 62 Mercer L. Rev. 139 (2010). For annual survey on insurance law, see 66 Mercer L. Rev. 93 (2014). For article, "The Peculiarities of Georgia Insurance Law," see 24 Ga. St. B.J. 18 (April 2019). For note, "Misrepresentations and Nondisclosures in the Insurance Application," see 13 Ga. L. Rev. 876 (1979). For comment on Jefferson Std. Life Ins. Co. v. Henderson, 37 Ga. App. 704, 141 S.E. 498 (1928), see 1 Ga. L. Rev. 53 (1929). For comment on Stillson v. Prudential Ins. Co., 202 Ga. 79, 42 S.E.2d 121 (1947), see 10 Ga. B.J. 225 (1947). For comment on National Life & Accident Ins. Co. v. Camp, 77 Ga. App. 667, 49 S.E.2d 670 (1948), see 11 Ga. B.J. 349 (1949). For comment criticizing State Farm Mut. Auto. Ins. Co. v. Reese, 116 Ga. App. 59, 156 S.E.2d 529 (1967), see 19 Mercer L. Rev. 277 (1968).

ANALYSIS

• General Consideration
• What is Material
• Procedure

RESEARCH REFERENCES

Am. Jur. 2d.

- 44 Am. Jur. 2d, Insurance, § 1007 et seq.

- Insurance: incorrect statement of age, 1 A.L.R. 459; 160 A.L.R. 295.

Insurance: effect of violation of warranty or condition of sole and unconditional ownership as regards one or more of several items of property covered by policy, 5 A.L.R. 808.

Statements by applicant for life insurance as to use of intoxicating liquor, 26 A.L.R. 1279.

Effect on insurance of mere failure to disclose encumbrance on property, 28 A.L.R. 801.

Applicability of statute limiting effect of representations and warranties in contract of insurance, to provision that policy shall not take effect unless delivered to assure while in good health, 29 A.L.R. 656.

Effect of erroneous designation of beneficiary of insurance as "wife,", 32 A.L.R. 1481.

Construction and effect of statute specifically directed against securing life insurance by fraud or upon life of person not in insurable condition, 40 A.L.R. 624.

Criterion of health for purposes of warranty or condition in insurance contract, 40 A.L.R. 662; 100 A.L.R. 362.

Right of insurer to insist upon representations not in fact made by insured nor incorporated in the application when signed by him, 43 A.L.R. 527.

Materiality, in application for accident insurance, of statements as to other insurance or indemnity thereunder, 55 A.L.R. 742.

Insurance: warranties and conditions precedent distinguished, 59 A.L.R. 611.

Avoidance of renewed fire policy for breach of warranty or representation first made in original application or policy, 62 A.L.R. 823.

Insurance: misrepresentation or nondisclosure not clearly otherwise material to the risk, but which influenced or might have influenced insurer in accepting risk as within statutory or policy provision exonerating insured from effect of misrepresentations other than those material to or increasing the risk, 73 A.L.R. 304.

Admissibility as against the beneficiary of life or accident insurance of statements or declarations by the insured outside his application, 86 A.L.R. 146.

Provisions of insurance policy as to watchman, and warranties and representations in that regard, 87 A.L.R. 1074.

Binding effect of application not signed by insured, 91 A.L.R. 1127.

Disability feature of insurance contract as subject of rescission apart from life insurance feature, 91 A.L.R. 1470.

Noncompliance with statutory requirement that insurance policy contain entire contract, or that application be attached incorporated in, endorsed upon, or delivered with, the policy as affecting right of insurer to show initial fraud or misrepresentation by insured, 93 A.L.R. 374.

Representations and warranties in credit insurance, 97 A.L.R. 1468.

Continued acceptance of insurance premiums or dues as basis of waiver of, or estoppel to assert, misrepresentation or breach affected by alternative obligation which survived misrepresentation or breach, 101 A.L.R. 1138.

Materiality of false representation, in application for policy of insurance, as to whether applicant has consulted physicians, 131 A.L.R. 617.

Opinion or expert testimony as to materiality of misrepresentation in application for insurance or as to increased risk or as to practice or usage of insurance companies regarding acceptance or rejection of certain class of risk, 135 A.L.R. 411.

Age adjustment clause of policy as affected by incontestable clause or statute against avoidance of policy because of misrepresentation, 135 A.L.R. 445.

Impairment of insured's health or physical condition not contributing to his death or disability as affecting insurer's liability, 148 A.L.R. 912.

Misstatement in description of automobile as affecting automobile policy, 149 A.L.R. 531.

Insurance: misstatement as to income of insured, 150 A.L.R. 1364.

Construction and application of provision of statute designed to prevent avoidance of automobile liability policy by reason of violation of its exclusions or conditions, or other terms, 1 A.L.R.2d 822.

Waiver of, or estoppel to assert, provision of policy respecting location of personal property covered thereby, 4 A.L.R.2d 868.

Judgment avoiding indemnity or liability policy for fraud as barring recovery from insurer by or on behalf of third person, 18 A.L.R.2d 891.

Misrepresentation by applicant for automobile liability insurance as to ownership of vehicle as material to risk, 33 A.L.R.2d 948.

Materiality of false statements by applicant for automobile insurance as to license revocations or suspensions or traffic violations, 89 A.L.R.2d 1027.

Obligee's concealment or misrepresentation concerning previous defalcation as affecting liability on fidelity bond or contract, 4 A.L.R.3d 1197.

Misrepresentation or misstatement as to insured's marital status, or as to his relationship to beneficiary, as ground for avoiding liability under life insurance policy, 14 A.L.R.3d 931.

Fraud, false swearing, or other misconduct of insured as affecting right of innocent mortgagee or loss payee to recover on property insurance, 24 A.L.R.3d 435.

Reformation of property insurance policy to correctly identify the person or interest insured, 25 A.L.R.3d 580.

Reformation of property insurance policy to correctly identify property insured, 25 A.L.R.3d 1232.

Insured's responsibility for false answers inserted by insurer's agent in application following correct answers by insured, or incorrect answers suggested by agent, 26 A.L.R.3d 6.

Insured's statement, in application for life or health insurance or its reinstatement, that he is in good health, as absolute representation of, or more statement of his good-faith belief in, his good health, 26 A.L.R.3d 1061.

Insured's misrepresentation or misstatement as to his name or marital status as ground for avoiding liability insurance, 27 A.L.R.3d 849.

What constitutes "serious illness," "serious disease," or equivalent language used in insurance application, 28 A.L.R.3d 1255.

Representations as to age or identity of persons who will drive vehicle, or as to extent of their relative use, as avoiding coverage under automobile insurance policy, 29 A.L.R.3d 1139.

Modern status of rules regarding materiality and effect of false statement by insurance applicant as to previous insurance cancellations or rejections, 66 A.L.R.3d 749.

Automobile insurance: concealment or nondisclosure of physical defects or conditions as avoiding coverage, 72 A.L.R.3d 804.

Misrepresentation or concealment by insured or agent avoiding liability by title insurer, 17 A.L.R.4th 1077.

Rescission or cancellation of insurance policy for insured's misrepresentation or concealment of information concerning human immunodeficiency virus (HIV), acquired immunodeficiency syndrome (AIDS), or related health problems, 15 A.L.R.5th 92.

Negligent misrepresentation as "accident" or "occurrence" warranting insurance coverage, 58 A.L.R.5th 483.

Rescission of directors' and officers' liability insurance policy, 29 A.L.R.6th 189.