PLGeorgiamedium
A Georgia HO-3 policy was issued 45 days ago. The insurer's underwriter wants to cancel because a subsequent inspection revealed a previously undisclosed wood stove. Under O.C.G.A. § 33-24-44, what is the insurer permitted to do?
AThe insurer cannot cancel; it must wait until the renewal anniversary
It may cancel for any reason on 10 days' written notice
CThe insurer must obtain Commissioner approval before cancelling
DThe insurer must give 30 days' written notice because the policy is mid-term
Why this is the answer
O.C.G.A. § 33-24-44 lets an insurer cancel a policy that has been in effect less than 60 days, for any reason, on 10 days' written notice, and § 33-24-46 restricts homeowners cancellations to listed reasons only after the policy has been in effect more than 60 days. Discovery of an undisclosed wood stove 45 days in therefore supports cancellation on 10 days' notice. After day 60, cancellation is limited to nonpayment, fraud or material misrepresentation, a change in risk that substantially increases a hazard, or violation of material policy terms.
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