L&HGeorgiahard
A Georgia group life insured wishes to assign her group life certificate to an irrevocable life insurance trust (ILIT) for estate planning. Which statement best reflects the Georgia statutory framework?
AGroup life certificates can never be assigned under Georgia law regardless of master-policy provisions
BAll group life certificates are automatically assignable by statute, and the master policy's terms are irrelevant
Assignment is allowed, subject to any assignment terms in the group policy
DAssignment is permitted only to a spouse or child and never to a trust
Why this is the answer
Under O.C.G.A. § 33-27-6, nothing in Georgia law prohibits a person insured under a group life policy from assigning all or part of the incidents of ownership, including the conversion privilege and the right to name a beneficiary. The assignment is valid subject to the terms of the policy, or of any agreement among the insured, the group policyholder and the insurer, relating to assignment, so a master policy that restricts assignment controls. An advisor moving a certificate into an ILIT to keep the proceeds out of the insured's gross estate should check the master policy's assignment terms first.
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