State RegulationsNC specificDifficulty 2/5
A North Carolina insurer is preparing to deliver a life policy that contains no unconditional refund provision of at least 10 days. When must the Buyer's Guide and Policy Summary be provided?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
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.