GA Code § 33-24-41 (2021)
2021 Georgia Code|Title 33 - Insurance|Chapter 24 - Insurance Generally|Article 1 - General Provisions|§ 33-24-41. Discharge of Insurer by Payment Generally

 Whenever the proceeds of or payments under a life or accident and sickness insurance policy or annuity contract become payable in accordance with the terms of the policy or contract or the exercise of any right or privilege under the policy or contract and the insurer makes payment of the proceeds or payments in accordance with the terms of the policy or contract or in accordance with any written assignment of the policy or contract, the person then designated in the policy or contract or by the assignment as being entitled to the proceeds or payments, if legally competent, shall be entitled to receive the proceeds or payments and to give full acquittance for the proceeds or payments and the payments shall fully discharge the insurer from all claims under the policy or contract unless, before payment is made, the insurer has received at its home office written notice by or on behalf of some other person that the other person claims to be entitled to the payment or some interest in the policy or contract.   (Code 1933, § 56-2424, enacted by Ga. L. 1960, p. 289, § 1.)   Law reviews.   - For annual survey of insurance law, see 57 Mercer L. Rev. 221 (2005). For annual survey of insurance law, see 58 Mercer L. Rev. 181 (2006). For annual survey on insurance law, see 70 Mercer L. Rev. 111 (2018).   JUDICIAL DECISIONS    O.C.G.A. § 33-24-41 does not apply to vehicle insurance policies. JCS Enter., Inc. v. Vanliner Ins., 227 Ga. App. 371, 489 S.E.2d 95 (1997).    This section is not retroactive as to payments made prior to the statute's effective date, to wit, January 1, 1961. Life & Cas. Ins. Co. v. Webb, 112 Ga. App. 344, 145 S.E.2d 63 (1965).   Loan receipt agreement between plaintiff and tortfeasor is covenant not to sue.    - Loan receipt agreement between a plaintiff and a joint tortfeasor in exchange for a forbearance to sue is an absolute payment and not a loan; as such, the agreement constitutes a covenant not to sue and not a release. American Chain & Cable Co. v. Brunson, 157 Ga. App. 833, 278 S.E.2d 719 (1981).   Applicability of    § 13-4-81 only to parties with whom covenant is made. - While O.C.G.A. § 13-4-81 provides that a covenant never to sue is equivalent to a release, § 13-4-81 applies to the parties with whom the covenant is made and not to another tortfeasor; a covenant not to sue one tortfeasor will not bar actions against another tortfeasor. American Chain & Cable Co. v. Brunson, 157 Ga. App. 833, 278 S.E.2d 719 (1981).   Notice obligations.    - Because O.C.G.A. § 33-24-41 clearly discharged the insurer from liability when an individual did not notify the insurer that the individual sought the proceeds of the insurance on the individual's father's life, the trial court erred in denying the insurer's motion for summary judgment. Colonial Life & Accident Ins. Co. v. Heveder, 274 Ga. App. 377, 618 S.E.2d 39 (2005).    Trial court did not err in granting summary judgment in favor of the life insurance company after the decedent's granddaughter claimed to be the rightful owner and beneficiary of the policy because the granddaughter did not provide notice to the insurance company of a competing claim prior to payment to the wife, and the insurance company, having no legal duty to investigate a fraudulent change of policy form, paid the person appearing on the face of the change of policy form. Emery v. Guarantee Trust Life Insurance Company, 358 Ga. App. 149, 854 S.E.2d 336 (2021).   RESEARCH REFERENCES   Am. Jur. 2d.   - 44A Am. Jur. 2d, Insurance, § 1727 et seq.   C.J.S.   - 46A C.J.S., Insurance, § 1978.   ALR.    - What rights are waived by insurer who pays money into court, 15 A.L.R. 1260.    Necessity and sufficiency of tender to avoid interest on insurance premiums, 35 A.L.R. 1252.    Right of court or insurer to require bond as condition of paying policy where there is not conclusive proof of insured's death, 61 A.L.R. 824.    Settlement with insurance company for less than face of valued policy as bar to recovery of difference where total loss shown, 109 A.L.R. 1485.    Judgment as res judicata as to whether insured is "permanently disabled" within contemplation of insurance policy, 142 A.L.R. 1170.    Right of insurer to restitution of payments made under mistake, 167 A.L.R. 470.   Liability of life insurer which pays proceeds of policy direct to beneficiary, for the portion of estate or succession tax attributable to such proceeds, 10 A.L.R.2d 657.   Rights and remedies of insurer paying loss as against insured who has released or settled with third person responsible for loss, 51 A.L.R.2d 697.   Duty of liability insurer to appeal, 69 A.L.R.2d 690.   Insured's exercise of election afforded under life insurance policy as affected by his death before complete consummation of option, 15 A.L.R.3d 1317.   Liability insurer's duty to defend action against an insured after insurer's full performance of its payment obligations under policy, 27 A.L.R.3d 1057.   Allocation of defense costs between primary and excess insurance carriers, 19 A.L.R.4th 107.   Credit life insurer's punitive damage liability for refusing payment, 55 A.L.R.4th 246.