State RegulationsNC specificDifficulty 2/5
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?
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Answer & full 3-part explanation (select an option above, or peek)
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.