State RegulationsNC specificDifficulty 1/5
An insurer delivers an individual family hospitalization policy to an insured in North Carolina. What return right must the policy's notice describe?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
G.S. 58-51-10 requires individual and family hospitalization policies to carry a notice that the insured may return the policy within 10 days of the date received for a prompt refund of premium, and the coverage is void when the policy is mailed or delivered back within that 10-day period. This is the standard health free-look right; the 30-day right belongs only to replacement transactions.
Why the other options are wrong
- B) 31 days is the A&H grace period for non-monthly premium modes, not the return period for a hospitalization policy.
- C) 30 days describes the replacement free-look right under 11 NCAC 12 .0612(a)(4), which applies only when existing coverage is being replaced.
- D) North Carolina's return right for individual hospitalization coverage is a short free-look measured in days, not a first-year cancellation right.
Memory hook
Standard health free look: 10 days in, premium promptly back.