An insurer is issuing a new individual life policy to an applicant in Raleigh. Under North Carolina's life insurance solicitation rules, when must the insurer deliver the Buyer's Guide and Policy Summary?

Why B is correct

Under G.S. 58-60-15, the Buyer's Guide and Policy Summary must be provided prior to accepting the initial premium deposit, unless the policy contains an unconditional refund provision of at least 10 days (or the Summary offers one), in which case delivery may be made with or at policy delivery. A simplified written statement is permitted where the equivalent level death benefit does not exceed $5,000.

Why the other options are wrong

• A) A 30-day post-delivery deadline is the replacement-transaction return right, not the Buyer's Guide timing rule.
• C) Delivery of the Buyer's Guide and Policy Summary is mandatory; the applicant's request is not the trigger.
• D) There is no first-policy-year delivery rule; the duty attaches at initial premium deposit or policy delivery.

Memory hook

Guide before gold, unless a 10-day refund covers it.

Why D is correct

Under G.S. 58-60-15, the insurer must provide the Buyer's Guide and Policy Summary prior to accepting the initial premium deposit. The exception applies where the policy carries an unconditional refund provision of at least 10 days, in which case delivery with or at policy delivery satisfies the rule.

Why the other options are wrong

• A) Delivery within 30 days after issuance is not the rule; the default timing is before the initial premium is accepted.
• B) Delivery is the insurer's obligation and does not depend on a written request from the applicant.
• C) There is no first-year delivery timing; the statute keys delivery to the initial premium or policy delivery.

Memory hook

Guide before gold — deliver before the first premium.

Why D is correct

Under G.S. 58-60-15, the Buyer's Guide and Policy Summary must be delivered before accepting the initial premium deposit, unless the policy contains — or the Summary offers — an unconditional refund provision of at least 10 days, in which case delivery may be made with or at policy delivery. Because this policy has no such refund provision, the guide and summary must precede the initial premium.

Why the other options are wrong

• A) The rule keys delivery to the initial premium deposit, not to the application stage.
• B) A 15-day delivery window is not part of the Buyer's Guide rule under G.S. 58-60-15.
• C) Delivering at the first policy anniversary would be far too late; the obligation precedes the initial premium unless the 10-day refund exception applies.

Memory hook

No 10-day refund clause? Guide and Summary before the first dollar.

Why D is correct

Under G.S. 58-60-15, the insurer must provide the Buyer's Guide and Policy Summary prior to accepting the initial premium deposit. The exception allows delivery with or at policy delivery when the policy (or the Policy Summary offer) contains an unconditional refund provision of at least 10 days, so the applicant still has a cost-free chance to reconsider.

Why the other options are wrong

• A is wrong because the documents must be delivered before the initial premium is accepted, not 15 days afterward.
• B is wrong because the free-look period ends after delivery; the disclosure obligation attaches at the start of the transaction, not its end.
• C is wrong because delivery of the Buyer's Guide and Policy Summary is mandatory for every sale; it is not triggered only by applicant request.

Memory hook

Guide and Summary first, money second - unless a 10-day refund rides along at delivery.

Why A is correct

Under G.S. 58-60-15, the insurer must provide the Buyer's Guide and Policy Summary prior to accepting the initial premium deposit. The statutory exception applies only when the policy (or the Policy Summary itself) contains an unconditional refund provision of at least 10 days, in which case the documents may be delivered with or at policy delivery. Practically, this ensures the applicant receives cost-comparison information before committing money to the purchase.

Why the other options are wrong

• B) The 30-day period belongs to the replacement-transaction return right, not to Buyer's Guide delivery; there is no across-the-board 30-day delivery window.
• C) The delivery obligation is fixed by statute and tied to the initial premium deposit, not left to insurer discretion during the policy year.
• D) Delivery is required by law without regard to an applicant request; an applicant's written request does not trigger or condition the duty.

Memory hook

Guide before gold: documents first, deposit second, unless a 10-day refund rides along.

Why B is correct

Under G.S. 58-60-15, the insurer must provide the Buyer's Guide and Policy Summary before accepting the initial premium deposit, unless the policy contains an unconditional refund provision of at least 10 days (or the Summary itself offers one) — in that case delivery with or at policy delivery is sufficient. The refund exception rewards insurers that give applicants a no-strings return right.

Why the other options are wrong

• A) Thirty days belongs to the replacement return right, not to Buyer's Guide delivery timing.
• C) No end-of-first-year delivery rule exists for disclosure documents.
• D) Delivery is mandatory on the insurer's own initiative, not merely on the applicant's written request.

Memory hook

Guide first, premium second — unless a ten-day refund rides along.