Legal Question in Real Estate Law in Georgia

It is still your duty to have made sure it got paid. Since the insurer is required to send any cancellation and lapse notices to you, you already knew about it. (Additionally, the annual statements from a mortgage company show disbursements, so if you read that bill insert you had a second notice). So you were negligent in not reading your mail.

Having said that, you may have some leverage as to pursuing the mortgage company. Initially, talk to them and see if they would pay the claim in exchange for you not pursuing them. If that fails, see a lawyer. Know that your negligence has weakened your claim.