P&CGeorgiahard
A Georgia property and casualty producer issues an oral binder to a client for a commercial building. Before a written policy is issued, the building suffers a fire loss. Under Georgia law, which statement most accurately describes the legal effect of the oral binder?
AOral binders are unenforceable in Georgia; all binders must be in writing under O.C.G.A. § 33-24-33
BAn oral binder is enforceable only if confirmed in writing within 24 hours of issuance
CAn oral binder voids the underlying policy because it lacks the required provisions of § 33-24-18
An oral binder is enforceable as temporary insurance on the insurer's usual terms
Why this is the answer
O.C.G.A. § 33-24-33 expressly permits oral or written binders as contracts of temporary insurance. An oral binder is enforceable and is deemed to include all the usual policy terms of the class of risk insured, together with applicable endorsements, unless clearly superseded by the binder's express terms. Producers should still confirm binders in writing as a best practice, but oral binders are valid under Georgia statute. The other options misstate Georgia law.
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