Opinion ID: 78219
Heading Depth: 1
Heading Rank: 8

Heading: The Standard for Materiality Under Subsection 33-24-7(b)(2) Is Objective.

Text: Subsection 33-24-7(b)(2) provides that misrepresentations in an insurance application shall not prevent a recovery under the policy unless the misrepresentations are [m]aterial either to the acceptance of the risk or to the hazard assumed by the insurer. Ga.Code Ann. § 33-24-7(b)(2). The beneficiaries argue that determining the materiality of Schoenthal's misrepresentations required that the district court consider the actual conduct of American General. We disagree. The courts of Georgia have held that a material misrepresentation under subsection 33-24-7(b)(2) is `one that would influence a prudent insurer in determining whether or not to accept the risk, or in fixing a different amount of premium in the event of such acceptance.' Lively v. S. Heritage Ins. Co., 256 Ga.App. 195, 196, 568 S.E.2d 98, 100 (Ct.App.2002) (quoting Jackson Nat. Life Ins. Co. v. Snead, 231 Ga.App. 406, 410, 499 S.E.2d 173, 176 (Ct.App.1998)); see also Haugseth v. Cotton States Mut. Ins. Co., 192 Ga.App. 853, 854, 386 S.E.2d 725, 726 (Ct.App.1989). We have recognized that this standard is objective. Rather than inquire into what a particular insurer would have done had it known of the insured's misrepresentation ... Georgia courts employ a reasonableness test, an objective standard of conduct against which to measure the effect of the insured's false declarations. Woods v. Indep. Fire Ins. Co., 749 F.2d 1493, 1497 (11th Cir.1985). The district court applied the correct standard.