P&CGeorgiaeasy
Under O.C.G.A. § 33-1-2, which element is essential to the statutory definition of 'insurance' in Georgia?
A contract to indemnify or pay benefits on determinable contingencies
BA gratuitous promise made by a charitable organization to assist members in hardship
CA wagering agreement secured by collateral held in escrow
DA self-funded employer arrangement with no transfer of risk
Why this is the answer
O.C.G.A. § 33-1-2 defines 'insurance' as a contract which is an integral part of a plan for distributing individual losses, whereby one undertakes to indemnify another or to pay a specified amount or benefits upon determinable contingencies. The definition therefore requires a contract, a plan for distributing losses (risk transfer), and a determinable contingency. Gratuitous aid, wagering, and self-funded retentions without risk transfer fall outside the statutory definition.
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